Portfolio Budget Statements 2017–18
Budget Related Paper No. 1.5
Education and Training Portfolio
Budget Initiatives and Explanations of
Appropriations Specified by Outcomes
and Programs by Entity
© Commonwealth of Australia 2017
ISSN 2204-8561 (Print)
ISSN 2204-857X (Online)
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in this document is provided under a Creative Commons Attribution 4.0 International
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The document must be attributed as the Portfolio Budget Statements 2017–18 Education
and Training Portfolio.
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Based on The Australian Government Department of Education and Training data.
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Other Uses
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to the Department of Education and Training on 1300 566 046.
ii
iii
Abbreviations and conventions
The following notation may be used:
NEC/nec
..
n/a
nfp
$m
$b
tbc
not elsewhere classified
nil
not zero, but rounded to zero
not applicable (unless otherwise specified)
not for publication
$ million
$ billion
to be confirmed
Figures in tables and in the text may be rounded. Figures in text are generally rounded
to one decimal place, whereas figures in tables are generally rounded to the nearest
thousand. Discrepancies in tables between totals and sums of components are due to
rounding.
Enquiries
Should you have any enquiries regarding this publication please contact the
Chief Financial Officer, Department of Education and Training on 1300 566 046.
Links to Portfolio Budget Statements (including Portfolio Additional Estimates
Statements and Portfolio Supplementary Additional Statements) can be located on the
Australian Government Budget website at: www.budget.gov.au.
iv
USER GUIDE
TO THE
PORTFOLIO BUDGET STATEMENTS
v
USER GUIDE
The purpose of the 2017–18 Portfolio Budget Statements (PBS) is to inform Senators
and Members of Parliament of the proposed allocation of resources to government
outcomes by entities within the portfolio. Entities receive resources from the annual
appropriations acts, special appropriations (including standing appropriations and
special accounts), and revenue from other sources.
A key role of the PBS is to facilitate understanding of proposed annual appropriations
in Appropriation Bills (No. 1 and No. 2) 2017–18. In this sense, the PBS are Budget
related papers and are declared by the Appropriation Acts to be ‘relevant documents’
to the interpretation of the Acts according to section 15AB of the Acts Interpretation Act
1901.
The PBS provide information, explanation and justification to enable Parliament to
understand the purpose of each outcome proposed in the Bills.
As required under section 12 of the Charter of Budget Honesty Act 1998, only entities
within the general government sector are included as part of the Commonwealth
general government sector fiscal estimates. These entities produce PBS where they
receive funding (either directly or via portfolio departments) through the annual
appropriation acts.
The enhanced commonwealth performance framework
The following diagram outlines the key components of the enhanced Commonwealth
performance framework. The diagram identifies the content of each of the publications
and the relationship between them. Links to the publications for each entity within the
portfolio can be found in the introduction to Section 2: Outcomes and planned
performance.
vi
vii
CONTENTS
PORTFOLIO OVERVIEW ....................................................................................................... 1
Education and Training portfolio overview ...................................................................... 3
RESOURCES AND PLANNED PERFORMANCE................................................................ 7
Department of Education and Training ........................................................................... 9
Australian Curriculum, Assessment and Reporting Authority ....................................... 79
Australian Institute of Aboriginal and Torres Strait Islander Studies ........................... 101
Australian Institute for Teaching and School Leadership............................................ 125
Australian Research Council ...................................................................................... 141
Australian Skills Quality Authority .............................................................................. 167
Tertiary Education Quality and Standards Agency ..................................................... 211
PORTFOLIO GLOSSARY ................................................................................................... 239
PORTFOLIO ACRONYMS .................................................................................................. 242
ix
PORTFOLIO OVERVIEW
1
EDUCATION AND TRAINING PORTFOLIO OVERVIEW
Ministers and portfolio responsibilities
Through the Education and Training portfolio, the Australian Government takes a
national leadership role in early childhood education and child care, preschool
education, schooling, higher education and research, skills and training, and
international education.
The Education and Training portfolio comprises the Department of Education and
Training (the department) and the following entities (see Figure 1 on pages 4 and 5):

Australian Curriculum, Assessment and Reporting Authority

Australian Institute of Aboriginal and Torres Strait Islander Studies

Australian Institute for Teaching and School Leadership

Australian Research Council

Australian Skills Quality Authority

Tertiary Education Quality and Standards Agency.
The department and portfolio entities work with state and territory governments,
other Australian Government entities and a range of service providers to provide high
quality policy advice and services for the benefit of all Australians.
For information on resourcing across the portfolio, please refer to Part 1: Agency
Financial Resourcing in Budget Paper No. 4: Agency Resourcing.
3
Portfolio Overview
Figure 1: Education and Training Portfolio Structure and Outcomes
Senator the Hon Simon Birmingham
Minister for Education and Training
The Hon Karen Andrews MP
Assistant Minister for Vocational Education and Skills
Department of Education and Training
Dr Michele Bruniges AM—Secretary
Outcome 1
Improved early learning, schooling, student educational outcomes and transitions to and
from school through access to quality child care, support, parent engagement, quality
teaching and learning environments.
Outcome 2
Promote growth in economic productivity and social wellbeing through access to quality
higher education, international education, and international quality research, skills and
training.
4
Portfolio Overview
Figure 1: Education and Training Portfolio Structure and Outcomes (continued)
Australian Curriculum, Assessment and
Reporting Authority
Australian Institute of Aboriginal and
Torres Strait Islander Studies
Robert Randall—Chief Executive Officer
Craig Ritchie—Acting Chief Executive
Officer
Outcome: Improved quality and
consistency of school education in Australia
through a national curriculum, national
assessment, data collection, and
performance reporting system.
Outcome: Further understanding of
Australian Indigenous cultures, past and
present through undertaking and
publishing research, and providing access
to print and audiovisual collections.
Australian Institute for Teaching and
School Leadership
Australian Research Council
Leanne Harvey—Acting Chief Executive
Officer
Lisa Rodgers—Chief Executive Officer
Outcome: Enhance the quality of teaching
and school leadership through developing
standards, recognising teaching excellence,
providing professional development
opportunities, and supporting the teaching
profession.
Outcome: Growth of knowledge and
innovation through managing research
funding schemes, measuring research
excellence and providing advice.
Australian Skills Quality Authority
Tertiary Education Quality and Standards
Agency
Mark Paterson AO—Chief Commissioner
and Chief Executive Officer
Anthony McClaran—Chief Executive
Officer
Outcome: Contribute to a high quality
vocational education and training sector,
including through streamlined and
nationally consistent regulation of training
providers and courses, and the
communication of advice to the sector on
improvements to the quality of vocational
education and training.
Outcome: Contribute to a high quality
higher education sector through
streamlined and nationally consistent
higher education regulatory arrangements;
registration of higher education providers;
accreditation of higher education courses;
and investigation, quality assurance and
dissemination of higher education
standards and performance.
5
RESOURCES AND
PLANNED PERFORMANCE
Department of Education and Training ................................................................................... 9
Australian Curriculum, Assessment and Reporting Authority ............................................ 79
Australian Institute of Aboriginal and Torres Strait Islander Studies .............................. 101
Australian Institute for Teaching and School Leadership .................................................. 125
Australian Research Council ................................................................................................. 141
Australian Skills Quality Authority ...................................................................................... 167
Tertiary Education Quality and Standards Agency ............................................................ 211
7
DEPARTMENT OF EDUCATION AND
TRAINING
ENTITY RESOURCES AND PLANNED
PERFORMANCE
9
DEPARTMENT OF EDUCATION AND TRAINING
SECTION 1: OVERVIEW AND RESOURCES ................................................................... 12
1.1
Strategic direction statement .......................................................................... 12
1.2
Entity resource statement ............................................................................... 15
1.3
Budget measures ............................................................................................ 18
SECTION 2: OUTCOMES AND PLANNED PERFORMANCE........................................ 22
2.1
Budgeted expenses and performance for Outcome 1 .................................... 24
2.2
Budgeted expenses and performance for Outcome 2 .................................... 42
SECTION 3: BUDGETED FINANCIAL STATEMENTS ................................................... 67
3.1
Budgeted financial statements........................................................................ 67
3.2
Budgeted financial statements tables ............................................................. 69
11
DEPARTMENT OF EDUCATION AND TRAINING
Section 1: Overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
The Department of Education and Training is the Australian Government's lead
agency responsible for national policies and programs that contribute to Australia’s
future prosperity by providing Australians with opportunity through learning. This
includes a focus on access to quality child care, early childhood education and
schooling, and a world-class tertiary education system, including vocational education
and training (VET), higher education, research and international education.
The department is progressing implementation of the Government’s Jobs for Families
Child Care package, which will result in a child care system that is more flexible, more
accessible and more affordable. A key feature of these reforms is replacing existing
child care payments with a single, means-tested Child Care Subsidy from 2 July 2018.
Measures in the 2017–18 Budget relating to these reforms include:

Adjustments to the Child Care Subsidy taper that will reduce the subsidy to zero
for families on incomes of $350,000 or more (in 2017–18 terms).

Adjustments to the Community Child Care Fund to set aside $61.8 million to
provide a third funding stream for Budget Based Funded services operating in
mostly rural and remote communities to ensure viability as they transition to the
new child care system. This is in addition to the Child Care Subsidy and
Additional Child Care Subsidy.
The department is working collaboratively with states and territories to improve
educational outcomes in Australian schools and preschools. The Government’s Quality
Schooling package establishes fairer, needs-based school funding arrangements. These
arrangements will be underpinned by a new national schooling reform agreement,
which will be developed with the states, territories and the non-government schooling
sector and based on evidence of what works. The package includes:

Commonwealth schools recurrent funding from 2018 ($18.6 billion additional
funding over 10 years)—creating simpler, fairer and more affordable funding
arrangements with a contribution to every child’s education according to need.

Extension of the National Partnership Agreement on Universal Access to Early
Childhood Education ($427.9 million) to support preschool programs for a
further calendar year (2018).
The Government is conducting a Review to Achieve Educational Excellence in
Australian Schools, to be led by David Gonski AC. The review will make
recommendations on the most effective teaching and learning strategies to reverse
12
Department of Education and Training Budget Statements
declining results, and seek to raise the performance of schools and students across
Australia. It will report back to the Government by December 2017.
Further, the department is supporting an independent review into regional, rural and
remote education, which is being led by Emeritus Professor John Halsey of Flinders
University and will report to Government by December 2017.
The department will support the implementation of the Government’s new Higher
Education Reform package. The package will make our higher education system
more sustainable, responsive to student and industry needs, more equitable for
under-represented groups and hold higher education institutions accountable for the
taxpayer funding they receive.
Through reform to funding for post-graduate, enabling and sub-bachelor qualifications
students will have more choices than ever, allowing them to find the right provider
and the right qualification to meet their higher education ambitions. A fairer sharing of
the costs of higher education will ensure the system is sustainable and that Australians
can continue to access one of the best higher education systems in the world on the
basis of merit, not capacity to pay. By rebalancing the share of funding between
students and taxpayers and the application of an efficiency dividend on universities,
these reforms will save $2.8 billion over the next four years in underlying cash terms.
The department continues to support the Government’s focus on skills and training.
The VET Student Loans program commenced on 1 January 2017, replacing the
VET-FEE-HELP scheme. The VET Student Loans program provides income contingent
loans to students in eligible VET courses, with a focus on greater protection for
students and supporting training that has strong links to industry needs.
The 2017–18 Budget includes support for strengthening apprenticeships and
traineeships by focussing on skills needed by industry, through:

The new $1.5 billion Skilling Australians Fund, which will underpin a new
partnership with the states and territories and help train Australian workers. The
fund will deliver more apprentices, trainees, pre-apprenticeships and higher level
skilled Australians in occupations in high demand or with future growth
potential, including in regional Australia.

$60 million for Industry Specialist Mentoring for Australian Apprentices.
In addition to the major structural reform packages, other measures impacting the
department as a result of the 2017−18 Budget are:

Rural and Regional Enterprise Scholarships ($24 million), which will provide
1200 new rural and regional enterprise scholarships for undergraduate,
postgraduate and VET students to undertake science, technology, engineering
and maths.
13
Department of Education and Training Budget Statements

Establish the National Education Evidence Base ($14.3 million over three years)
as part of the Government’s Data Integration Partnership for Australia (DIPA),
which will build a whole-of-government data integration, policy analysis and
evaluation capability. The National Education Evidence Base will bring together
data on all phases of education—early childhood, schooling, VET and higher
education—to develop a nationally-consistent approach to understanding student
pathways. DIPA is funded under the Public Service Modernisation Fund.

Changes to tighten the Child Care Regulatory framework, which apply to family
day care and ensure that child care fee assistance is not payable in respect of
individuals over the age of 18 years. For children who have turned 14 but not yet
18, or who attend secondary school, fee assistance will only be payable in limited
circumstances. Measures to improve payment integrity where the taxpayer
supports 100 per cent of the fee have also been introduced.

English language learning for Indigenous children program ($5.9 million) to
trial a series of play-based apps to be used in preschool to improve English
literacy outcomes for Aboriginal and Torres Strait Islander children with English
as a second language.

Efficiency savings from the Skills for Education and Employment, Industry
Workforce Training, and Framework for Open Learning programs will be
redirected to repair the Budget and fund Government policy priorities.
The department is also progressing the Government’s Shared and Common Services
Program through shared services arrangements with the Departments of Employment
and Finance with a focus on strengthened governance and performance reporting
arrangements.
14
Department of Education and Training Budget Statements
1.2
ENTITY RESOURCE STATEMENT
Table 1.1 shows the total funding from all sources available to the entity for its
operations and to deliver programs and services on behalf of the Government.
The table summarises how resources will be applied by outcome (government strategic
policy objectives) and by administered (on behalf of the Government or the public) and
departmental (for the entity’s operations) classification.
For more detailed information on special accounts and special appropriations, please
refer to Budget Paper No. 4 – Agency Resourcing.
Information in this table is presented on a resourcing (that is, appropriations/cash
available) basis, while the ‘Budgeted expenses by Outcome’ tables in Section 2 and the
financial statements in Section 3 are presented on an accrual basis.
Table 1.1: Department of Education and Training resource statement — Budget
estimates for 2017–18 as at Budget May 2017
Departmental
Annual appropriations - ordinary annual services (a)
Prior year appropriations available
Departmental appropriation (b)
s74 retained revenue receipts (c)
Departmental capital budget (d)
Annual appropriations - other services - non-operating (e)
Prior year appropriations available
Equity injection
Total departmental annual appropriations
Special accounts (f)
Opening balance
Appropriation receipts
Non-appropriation receipts
Total special accounts
less departmental appropriations drawn from annual/special
appropriations and credited to special accounts
Total departmental resourcing
15
2016–17
Estimated
actual
$'000
2017–18
Estimate
62,900
333,539
17,446
18,028
332,073
13,946
22,784
9,866
5,985
447,764
12,636
381,439
3,536
1,720
5,256
3,536
1,737
5,273
453,020
386,712
$'000
Department of Education and Training Budget Statements
Table 1.1: Department of Education and Training resource statement — Budget estimates
for 2017–18 as at Budget May 2017 (continued)
2016–17
Estimated
actual
$'000
2017–18
Estimate
$'000
Administered
Annual appropriations - ordinary annual services (a)
Prior year appropriations available
Outcome 1
Outcome 2
Payments to corporate entities (g)
Annual appropriations - other services - specific payments to
States, ACT, NT and local government (e)
Prior year appropriations available
Outcome 1 (h)
Total administered annual appropriations
Total administered special appropriations (f)
Special accounts (f)
Opening balance
522,406
1,357,582
19,817
476,308
1,351,767
19,493
42,686
1,942,491
42,728,942
16,299
1,863,867
43,770,640
66,963
2,312
48,101
117,376
79,669
13,000
19,501
112,170
Appropriation receipts (i)
Appropriation receipts from other entities
Non-appropriation receipts
Total special account receipts
less administered appropriations drawn from annual/special
appropriations and credited to special accounts
less payments to corporate entities from annual/special
appropriations
Total administered resourcing
(2,312)
(13,000)
(19,817)
44,766,680
(19,493)
45,714,184
Total resourcing for the Department of Education and Training
45,219,700
46,100,896
2016–17
2017–18
Average staffing level (number) (j)
1,870
1,821
Prepared on a resourcing (i.e. appropriations available) basis.
Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow
statement.
(a) Appropriation Bill (No. 1) 2017–18.
(b) Excludes departmental capital budget (DCB).
(c) Estimated retained revenue receipts under section 74 of the PGPA Act.
(d) Departmental capital budgets are not separately identified in Appropriation Bill (No. 1) and form part of
ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes,
this amount has been designated as a 'contribution by owner'.
(e) Appropriation Bill (No. 2) 2017–18.
(f)
Excludes 'Special Public Money' held in accounts like Other Trust Monies accounts (OTM), Services
for Other Government and Non-agency Bodies accounts (SOG) or Services for Other Entities and
Trust Moneys accounts (SOETM). For further information on special appropriations and special
accounts, please refer to Budget Paper No. 4 - Agency Resourcing. Please also see Table 2.1 for
further information on outcome and program expenses broken down by various funding sources, e.g.
annual appropriations, special appropriations and special accounts.
(g) 'Corporate entities' are corporate Commonwealth entities and Commonwealth companies as defined
under the PGPA Act.
(h) Relates to appropriations sought for payment to the States, ACT, NT and local governments in
Appropriation Bill No. 2 2017–18.
(i)
Amounts credited to the special account(s) from Education and Trainings annual appropriations.
(j)
The change in Average Staffing Level is predominantly due to the machinery of government changes
which commenced on 1 December 2016.
16
Department of Education and Training Budget Statements
(k)
Paid by a grant from Outcome 1 annual appropriations.
Third party payments from and on behalf of other entities
Third party payments from and on behalf of other entities
2016–17
Estimated
actual
$'000
Payments made by other entities on behalf of Education and Training
(disclosed above)
Payments made to corporate entities within the Portfolio
Australian Curriculum, Assessment and Reporting Authority (Annual
Appropriation Bill No.1) (k)
Australian Institute of Aboriginal and Torres Strait Islander Studies
(Annual Appropriation Bill No.1)
Australian Institute for Teaching and School Leadership
(Annual Appropriation Bill No.1) (k)
17
2017–18
Estimate
$'000
1,447,249
1,466,752
13,797
15,291
19,817
19,493
12,061
11,861
Department of Education and Training Budget Statements
1.3
BUDGET MEASURES
Budget measures in Part 1 relating to the Department of Education and Training are
detailed in Budget Paper No. 2 and are summarised below.
Table 1.2: Department of Education and Training 2017–18 Budget measures
Part 1: Measures announced since the 2016–17 Mid-Year Economic and Fiscal Outlook
(MYEFO)
Program
Revenue measures
Higher Education Reform - a fairer and
student-focused higher education system
Administered revenues
Departmental revenues
Total
Higher Education Reform - a more
sustainable higher education sector
Administered revenues
Departmental revenues
Total
Unlegislated Budget Repair Measures not proceeding
Administered revenues
Departmental revenues
Total
IT System to Support VET Student Loans
Administered expenses
Departmental expenses
Total
Family Day Care - further improving
integrity
Administered expenses
Departmental expenses
Total
2017–18
$'000
2018–19
$'000
2019–20
$'000
2020–21
$'000
2.4
-
-
277
-
1,507
-
3,733
-
-
-
277
1,507
3,733
30,705
-
153,264
-
288,081
-
426,893
-
594,111
-
30,705
153,264
288,081
426,893
594,111
(168)
-
243,819
-
457,239
-
442,764
-
467,002
-
(168)
243,819
457,239
442,764
467,002
30,537
-
397,083
-
745,597
-
871,164
-
1,064,846
30,537
397,083
745,597
871,164
1,064,846
-
-
57
58
59
-
-
57
58
59
-
-
-
-
-
-
-
-
-
-
(58,245) (193,224)
-
-
-
-
(58,245) (193,224)
-
-
-
2.4
2.4
Total
Total revenue measures
Administered
Departmental
Total
Expense measures
Overseas Allowances for Australian
Government Employees - efficiencies
Administered expenses
Departmental expenses
2016–17
$'000
-
All
2
1.1,1.2,
1.3
18
Department of Education and Training Budget Statements
Table 1.2: Department of Education and Training 2017–18 Budget measures (continued)
Program
Jobs for Families Package - Budget
Based Funded services - continuation
Administered expenses
Departmental expenses
Total
Jobs for Families Package - upper
income threshold
Administered expenses
Departmental expenses
Total
Better targeting skilled
visas (a)
Administered expenses
Departmental expenses
Total
Quality Schools - true needs-based
funding for Australia's schools
Administered expenses
Departmental expenses
Total
Closing the Gap - English language
learning for Indigenous children trial
Administered expenses
Departmental expenses
2016–17
$'000
Total
National Partnership Agreement on
Universal Access to Early Childhood
Education - extension
Administered expenses
Departmental expenses
Total
Higher Education Reform - a fairer and
student-focused higher education system
Administered expenses
Departmental expenses
Total
Higher Education Reform - a more
sustainable higher education sector
Administered expenses
Departmental expenses
2018–19
$'000
2019–20
$'000
2020–21
$'000
1.1
-
-
-
-
-
-
-
-
-
-
-
-
(32,551)
-
(39,429)
-
(46,446)
-
-
-
(32,551)
(39,429)
(46,446)
-
100
-
288
-
(115)
-
(3,677)
-
-
100
288
(115)
(3,677)
-
103,183
230
291,849
596
508,368
1,267
840,283
-
-
103,413
292,445
509,635
840,283
-
803
-
3,305
-
1,204
-
571
-
-
803
3,305
1,204
571
-
(477)
-
(208)
-
(736)
-
(1,086)
-
-
(477)
(208)
(736)
(1,086)
1.4
1.4,1.5,
1.6
1.5,1.6,
1.7
1.7
Total
Framework for Open Learning Program efficiencies
Administered expenses
Departmental expenses
2017–18
$'000
1.7
1.7
-
-
1,500
-
-
-
-
-
1,500
-
-
2.1,2.3,
2.4
-
(32,086)
3,562
(51,558)
2,517
16,817
2,057
(34,797)
1,718
-
(28,524)
(49,041)
18,874
(33,079)
2.1,2.3,
2.4
Total
19
-
(169,064) (474,973) (725,911) (890,884)
168
(911)
(1,072)
(870)
-
(168,896) (475,884) (726,983) (891,754)
Department of Education and Training Budget Statements
Table 1.2: Department of Education and Training 2017–18 Budget measures (continued)
Unlegislated Budget Repair Measures not proceeding
Administered expenses
Departmental expenses
Total
Central Coast Health and Medical
Campus - additional funding
Administered expenses
Departmental expenses
Total
Rural and Regional Enterprise
Scholarships - establishment
Administered expenses
Departmental expenses
Total
National Innovation and Science Agenda Research Infrastructure Investment Plan development
Administered expenses
Departmental expenses
Total
Industry Specialist Mentoring for
Australian Apprentices - establishment
Administered expenses
Departmental expenses
Total
Industry Workforce Training Program efficiencies
Administered expenses
Departmental expenses
Program
2.1,2.3,
2.4,2.5
2016–17
$'000
2017–18
$'000
2018–19
$'000
(17,633)
408,719
908,704 1,040,577 1,090,617
-
Total
Skills for Education and Employment
Program - efficiencies
Administered expenses
Departmental expenses
2020–21
$'000
-
-
-
-
408,719
908,704
1,040,577
1,090,617
-
1,250
-
2,500
-
2,500
-
2,500
-
-
1,250
2,500
2,500
2,500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19,375
823
39,038
465
-
-
-
20,198
39,503
-
-
(4,000)
-
(7,095)
-
(7,430)
-
(8,254)
-
(8,254)
-
(4,000)
(7,095)
(7,430)
(8,254)
(8,254)
(17,633)
2.3
2.3
2.6
2.8
2.8
Total
Skilling Australians Fund (b)
Administered expenses
Departmental expenses
2019–20
$'000
2.8
-
-
-
-
-
-
-
-
-
-
-
13,667
-
(26,214)
-
(33,107)
-
(34,652)
-
-
13,667
(26,214)
(33,107)
(34,652)
2.8
Total
Total expense measures
Administered
Departmental
(79,878)
-
145,151
4,783
654,250
2,724
761,914
2,310
914,175
907
Total
(79,878)
149,934
656,974
764,224
915,082
20
Department of Education and Training Budget Statements
Table 1.2: Department of Education and Training 2017–18 Budget measures (continued)
Program
Capital measures
Quality Schools - true needs-based
funding for Australia's schools
Administered capital
Departmental capital
Total
Higher Education Reform - a more
sustainable higher education sector
Administered capital
Departmental capital
Total
Industry Specialist Mentoring for
Australian Apprentices - establishment
Administered capital
Departmental capital
2016–17
$'000
2017–18
$'000
2018–19
$'000
2019–20
$'000
2020–21
$'000
1
-
2,959
3,026
1,691
-
-
2,959
3,026
1,691
-
-
480
-
-
-
-
480
-
-
-
-
299
-
-
-
-
299
-
-
-
-
3,738
3,026
1,691
-
2
2
Total
Total capital measures
Administered
Departmental
Total
3,738
3,026
1,691
Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a
decrease in funds and a positive (+) represent an increase in funds.
(a) The lead entity for the measure titled ‘Better targeting skilled visas’ is the Department of Immigration
and Border Protection. The full measure description and package details appear in Budget Paper No. 2
under the Immigration and Border Protection portfolio.
(b) The lead entity for the measure titled ‘Skilling Australians Fund’ is the Department of the Treasury. The
full measure description and package details appear in Budget Paper No. 2 under the Treasury
portfolio.
21
Department of Education and Training Budget Statements
Section 2: Outcomes and planned performance
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programs are the
primary vehicle by which government entities achieve the intended results of their
outcome statements. Entities are required to identify the programs which contribute to
government outcomes over the Budget and forward years.
Each outcome is described below together with its related programs. Detailed
information on expenses for each outcome and program is also provided, further
broken down by funding source.
Note:
Performance reporting requirements in the Portfolio Budget Statements are part of the
enhanced Commonwealth performance framework established by the Public
Governance, Performance and Accountability Act 2013. It is anticipated that the
performance criteria described in Portfolio Budget Statements will be read with
broader information provided in an entity’s corporate plans and annual performance
statements—included in Annual Reports—to provide an entity’s complete
performance story.
The most recent corporate plan for the Department of Education and Training can be
found at: www.education.gov.au/corporate-plan
The most recent annual performance statement can be found in the Department of
Education and Training Annual Report at: www.education.gov.au/annual-reports
22
Department of Education and Training Budget Statements
Figure 2: Department of Education and Training program Outcome 1 structure
changes
The numbering of programs in Outcome 1 has changed since the Portfolio Additional
Estimates Statements 2016–17. This change aligns the order of the programs with the
department’s goals as outlined in the 2016–2020 Corporate Plan. There is no change to
the program structure for Outcome 2.
2016–17 program numbering
2017–18 program numbering
Program 1.6: Support for the Child Care
System
Program 1.1: Support for the Child Care
System
Program 1.7: Child Care Benefit
Program 1.2: Child Care Benefit
Program 1.8: Child Care Rebate
Program 1.3: Child Care Rebate
Program 1.9: Child Care Subsidy
Program 1.4: Child Care Subsidy
Program 1.1: Government Schools National
Support
Program 1.5: Government Schools National
Support
Program 1.2: Non-Government Schools
National Support
Program 1.6: Non-Government Schools
National Support
Program 1.3: Early Learning and Schools
Support
Program 1.7: Early Learning and Schools
Support
Program 1.5: Youth Support
Program 1.8: Youth Support
Program 1.4: Trade Training Centres in
Schools
(program ceased 30 June 2016)
23
Department of Education and Training Budget Statements
2.1
BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1
Outcome 1: Improved early learning, schooling, student educational outcomes
and transitions to and from school through access to quality child care,
support, parent engagement, quality teaching and learning environments.
Programs contributing to Outcome 1

Program 1.1: Support for the Child Care System

Program 1.2: Child Care Benefit

Program 1.3: Child Care Rebate

Program 1.4: Child Care Subsidy

Program 1.5: Government Schools National Support

Program 1.6: Non-Government Schools National Support

Program 1.7: Early Learning and Schools Support

Program 1.8: Youth Support
Linked programs
Department of the Prime Minister and Cabinet
Programs

Program 2.2 - Children and Schooling
Contribution to Outcome 1 made by linked programs
The linked program contributes to Outcome 1 by supporting families in remote Indigenous communities to
increase Indigenous school attendance and improve educational outcomes.
Department of Human Services
Programs

Program 1.1 - Services to the Community - Social Security and Welfare
Contribution to Outcome 1 made by linked programs
The linked program contributes to Outcome 1 by administering child care payments to eligible families.
Department of the Treasury
Programs

Program 1.9 - National Partnership Payments to the States
Contribution to Outcome 1 made by linked programs
The linked program contributes to Outcome 1 through Specific Purpose Payments and National
Partnerships.
24
Department of Education and Training Budget Statements
Budgeted expenses for Outcome 1
This table shows how much the entity intends to spend (on an accrual basis) on
achieving the outcome, broken down by program, as well as by administered and
departmental funding sources.
Table 2.1.1: Budgeted expenses for Outcome 1
Outcome 1: Improved early learning, schooling, student educational outcomes and transitions to and
from school through access to quality child care, support, parent engagement, quality teaching and
learning environments.
2016–17
Estimated
actual
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
357,357
345,703
350,988
355,613
1,553
-
-
-
-
330,944
357,357
345,703
350,988
355,613
3,623,185
3,608,735
-
-
-
3,623,185
3,608,735
-
-
-
3,584,220
3,937,565
27
14
14
3,584,220
3,937,565
27
14
14
-
-
8,755,068
9,565,605
10,003,857
-
-
8,755,068
9,565,605
10,003,857
Program 1.1: Support for the Child Care System
Administered expenses
Ordinary annual services
(Appropriation Bill No. 1 and Bill
329,391
No. 3)
Special accounts
Early Years Quality Fund Special
Account Act 2013
Total expenses for
program 1.1
Program 1.2: Child Care Benefit
Administered expenses
Special appropriations
A New Tax System (Family
Assistance) (Administration)
Act 1999
Total expenses for
program 1.2
Program 1.3: Child Care Rebate
Administered expenses
Special appropriations
A New Tax System (Family
Assistance) (Administration)
Act 1999
Total expenses for
program 1.3
Program 1.4: Child Care Subsidy
Administered expenses
Special appropriations
A New Tax System (Family
Assistance) (Administration)
Act 1999
Total expenses for
program 1.4
25
2017–18
Budget
$'000
Department of Education and Training Budget Statements
Table 2.1.1: Budgeted expenses for Outcome 1 (continued)
2016–17
Estimated
actual
$'000
Program 1.5: Government Schools National Support
Administered expenses
Other services (Appropriation Act No. 2
and Bill No. 4)
Special appropriations
6,498,273
Australian Education Act 2013
Total expenses for
6,498,273
program 1.5
2017–18
Budget
$'000
Program 1.8: Youth Support
Administered expenses
Ordinary annual services
(Appropriation Bill No. 1 and Bill
535
No. 3)
Total expenses for
535
program 1.8
Outcome 1 Totals by appropriation type
Administered expenses
Ordinary annual services
438,823
(Appropriation Bill No. 1)
Other services (Appropriation
42,686
Bill No. 2)
Special appropriations
24,259,614
Special accounts
4,136
Administered total 24,745,259
26
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
1,629
4,987
8,575
12,804
7,079,669
7,570,915
8,139,861
8,730,154
7,081,298
7,575,902
8,148,436
8,742,958
28,618
30,521
33,364
11,661,326
12,278,078
12,931,154
11,689,944
12,308,599
12,964,518
114,441
102,756
73,395
Program 1.6: Non-Government Schools National Support
Administered expenses
Other services (Appropriation Act No. 2
42,686
14,670
and Bill No. 4)
Special appropriations
10,553,936 11,121,558
Australian Education Act 2013
Total expenses for
10,596,622 11,136,228
program 1.6
Program 1.7: Early Learning and Schools Support
Administered expenses
Ordinary annual services
(Appropriation Bill No. 1 and Bill
108,897
No. 3)
Special accounts
SOETM - Students with Disabilities
2,583
Total expenses for
111,480
program 1.7
2018–19
Forward
estimate
$'000
118,951
578
-
-
-
119,529
114,441
102,756
73,395
-
-
-
-
-
-
-
-
476,308
460,144
453,744
429,008
16,299
33,605
39,096
46,168
25,747,527
578
26,240,712
27,987,336
28,481,085
29,983,558
30,476,398
31,665,179
32,140,355
Department of Education and Training Budget Statements
Table 2.1.1: Budgeted expenses for Outcome 1 (continued)
2016–17
Estimated
actual
$'000
Departmental expenses
Departmental appropriation
160,113
s74 Retained revenue
4,587
receipts (a)
Expenses not requiring
appropriation in the Budget
14,647
year (b)
Departmental total
179,347
Total expenses for Outcome 1
24,924,606
Movement of administered
funds between years (c)
Outcome 1:
Child Care Subsidy Communications
Total movement of
administered funds
2016–17
Estimated
actual
$'000
2017–18
Budget
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
159,343
149,534
143,823
141,950
3,979
3,979
3,979
3,978
15,414
15,649
15,961
17,147
178,736
26,419,448
169,162
28,650,247
163,763
30,640,161
163,075
32,303,430
$'000
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
(6,507)
6,420
87
-
-
(6,507)
6,420
87
-
-
2016–17
2017–18
912
911
Average staffing level (number)
(a) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act 2013.
(b) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,
amortisation expenses, make good expenses, audit fees.
(c) Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an
increase in funds.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the budget year as government priorities change.
27
Department of Education and Training Budget Statements
Performance criteria for Outcome 1
This section details the performance criteria for each program associated with
Outcome 1. It summarises how each program is delivered and where 2017–18 Budget
measures have created new programs or materially changed existing programs.
Outcome 1: Improved early learning, schooling, student educational outcomes
and transitions to and from school through access to quality child care,
support, parent engagement, quality teaching and learning environments.
Program 1.1: Support for the Child Care System
Objective
The program helps families to participate in the social and economic life of the
community by:





Delivery
promoting and supporting quality and affordable child care
assisting services to improve access and inclusion for vulnerable or
disadvantaged children and families, including children with disabilities and their
families
supporting the sustainability of child care for all Australian children and families
including in areas and/or under circumstances where services would not otherwise
be viable
developing, maintaining and disseminating information to assist families to make
informed decisions about child care and the related support programs and
services provided or funded by the Government
supporting child care services to be more responsive to the needs of families.
Support for the Child Care System incorporates a number of activities and payment
types that are tailored to different types of child care in different circumstances to meet
the above objective. Funding is delivered directly by the department to eligible
recipients, including child care services and providers, or through payments by the
Department of Human Services to eligible families.
In 2017–18 the department will be focussing on preparing child care services and
families to transition to new arrangements from 2 July 2018, including:




Purpose
launching the first rounds of the Community Child Care Fund grants program
finalising implementation arrangements for Additional Child Care Subsidy
developing and implementing strategies to prepare services and families to
transition from the Community Support and Budget Based Funded programs
finalising policy and implementation arrangements for child care in the home.
Department of Education and Training Corporate Plan 2016–2020

Goal 1: Access to quality child care
Measures impacting program 1.1:


Family Day Care – further improving integrity
Jobs for Families Package – Budget Based Funded Services – continuation
28
Department of Education and Training Budget Statements
Performance information 1.1 Support for the Child Care System
Year
High level performance criteria
Expected achievement or target 1
2016–17
Maintain, develop and implement activities that
improve access to child care and provide
targeted assistance to services and vulnerable
or disadvantaged families.
Progressed activities, including:



ensuring child care services and
families were well informed of
changes ahead of a transition to
new programs
providing support to Budget Based
Funded services to analyse current
business practices to assist in
transition to new arrangements
implementing the Inclusion Support
Programme, which started on 1 July
2016, to improve child care services’
capacity and capability to include
children with additional needs.
Proportion of all children attending child
care who are in priority groups:



2017–18
1
2
3% Indigenous children
17% children from culturally and
linguistically diverse backgrounds
3% children with disabilities.2
Provide access to affordable, flexible and high
quality child care that supports parents and
families to engage with work, study, training or
other recognised activities.
Up to 500 families assisted through the
Interim Home Based Carer Subsidy
Programme (Nanny Pilot Programme)
over the life of the pilot to 30 June 2018.
Prepare child care services and families to
transition to new arrangements that apply from
2 July 2018, including launching the first round
of the Community Child Care Fund and
assisting services to reduce access barriers
particularly in disadvantaged, regional and
remote communities.
Eligible services and families transition
from the Community Support Program
and Budget Based Funded programs to
new arrangements.
Community Child Care Fund grants
program is ready to start on 2 July 2018.
Eligible families are transitioned to the
Additional Child Care Subsidy.
Additional performance information will be published in the 2016–17 Annual Report.
Current targets are based on the 2013 National Early Childhood Education and Care Workforce
Census, published in May 2014. The 2016 census results will be published in 2017.
29
Department of Education and Training Budget Statements
Year
High level performance criteria
Expected achievement or target 1
Provide support for child care services and
families so that more children access quality
child care and early learning services.
Build the capacity and capability of child
care services to include children with
additional needs through the Inclusion
Support Programme (ISP).3
In conjunction with the Interim Home
Based Carer Subsidy Programme
evaluation, a review of the existing In
Home Care program is also being
undertaken. The results from these
reviews will inform future policy design
for subsided child care provided in the
family home.
Maintain or increase the proportion of all
children attending child care who are in
priority groups:



2018–19
and beyond
3% Indigenous children
17% children from culturally and
linguistically diverse backgrounds
3% children with disabilities.4
Provide support for child care services and
families so that more children access quality
child care and early learning services.
As per 2017–18
Assist services to reduce barriers to accessing
child care, particularly for disadvantaged,
regional and remote families and communities
from July 2018.
Child care services in disadvantaged,
regional and remote communities are
assisted to address barriers to
participation through the Additional Child
Care Subsidy and Child Care
Community Fund.
Program expenses 1.1 Support for the Child Care System
Annual administered expenses:
Ordinary annual services
(Appropriation Act No. 1 and Bill No. 3)
Child Care Services Support
Jobs Education and Training, Child Care
Fee Assistance (JETCCFA)
Child Care Subsidy Communications
Campaign
Special Account Expenses:
Early Years Quality Fund Special
Account Act 2013
Total expenses for program 1.1
3
4
2016–17
Estimated
actual
$'000
2017–18
Budget
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
290,046
294,259
345,616
350,988
355,613
39,137
47,231
-
-
-
208
15,867
87
-
-
1,553
330,944
357,357
345,703
350,988
355,613
$'000
In 2017–18 the department will be developing an outcomes reporting tool to measure child
care services’ inclusion capacity and capability and commence benchmarking using the tool.
Baseline target from the 2013 National Early Childhood Education and Care Workforce Census,
published in May 2014. The 2016 census results will be published in 2017.
30
Department of Education and Training Budget Statements
Program 1.2: Child Care Benefit
Objective
Child Care Benefit (CCB) reduces the cost barrier for families to access quality and
flexible child care services.
Delivery
CCB funding is delivered through the Department of Human Services. CCB is usually
paid directly to approved child care services, to reduce the fees that eligible families
pay.
CCB is income tested with the level of support dependant on family income, the
number of children in care, the hours of care, and the type of child care used. Low
income families receive the highest rate of CCB.
In 2017–18 the department will be focussed on managing the implementation of the
Jobs for Families Child Care Package by developing strategies and initiatives to
transition eligible families and services from CCB to Child Care Subsidy (CCS).
CCB will cease on 1 July 2018 and CCS commences on 2 July 2018.
Purpose
Department of Education and Training Corporate Plan 2016–2020

Goal 1: Access to quality child care
Measures materially impacting program 1.2:

Family Day Care – further improving integrity
Performance information 1.2 Child Care Benefit
Year
High level performance criteria 5
Expected achievement or target 6
2016–17
Ensure accurate, efficient and effective
management of child care fee assistance.
Improved payment integrity through
introduction of legislative determinations.
2017–18
Ensure accurate, efficient and effective
management of child care fee assistance.
Compliance activities improve the
integrity of child care payments.
Program expenses 1.2 Child Care Benefit
2016–17
Estimated
actual
$'000
Special Appropriations:
A New Tax System (Family Assistance)
(Administration) Act 1999
Total expenses for program 1.2
5
6
3,623,185
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
3,608,735
-
-
-
3,623,185 3,608,735
-
-
-
New or modified performance criteria or targets that reflect material changes as a result of
Budget measures are shown in italics.
Additional performance information will be published in the 2016–17 Annual Report.
31
Department of Education and Training Budget Statements
Program 1.3: Child Care Rebate
Objective
Child Care Rebate (CCR) aims to reduce the cost barrier for families to access quality
and flexible child care services by providing additional financial assistance.
Delivery
CCR funding is delivered through the Department of Human Services. CCR may be
paid fortnightly to approved Child Care Services to reduce the fees that eligible
families pay.
CCR is not income tested so working families using approved child care can receive
this assistance regardless of their income. CCR assists families to cover up to
50 per cent of out-of-pocket approved child care expenses, after Child Care Benefit
(CCB) has been received, up to a maximum limit of $7500 per child, per year.
In 2017–18 the department will be focussed on managing the implementation of the
Jobs for Families Child Care Package by developing strategies and initiatives to
transition eligible families and services from CCR to Child Care Subsidy (CCS).
CCR will cease on 1 July 2018 and CCS commences on 2 July 2018.
Purpose
Department of Education and Training Corporate Plan 2016–2020

Goal 1: Access to quality child care
Measures impacting program 1.3:

Family Day Care – further improving integrity
Performance information 1.3 Child Care Rebate
Year
High level performance criteria 7
Expected achievement or target 8
2016–17
Ensure accurate, efficient and effective
management of child care fee assistance.
Improved payment integrity through
introduction of legislative determinations.
2017–18
Ensure accurate, efficient and effective
management of child care fee assistance.
Compliance activities improve the
integrity of child care payments.
Program expenses 1.3 Child Care Rebate
2016–17
Estimated
actual
$'000
Special Appropriations:
A New Tax System (Family Assistance)
(Administration) Act 1999
Total expenses for program 1.3
7
8
3,584,220
3,584,220
2017–18
Budget
$'000
3,937,565
3,937,565
2018–19
Forward
estimate
$'000
27
27
2019–20
Forward
estimate
$'000
14
14
2020–21
Forward
estimate
$'000
14
14
New or modified performance criteria or targets that reflect material changes as a result of
Budget measures are shown in italics.
Additional performance information will be published in the 2016–17 Annual Report.
32
Department of Education and Training Budget Statements
Program 1.4: Child Care Subsidy
Objective
The Child Care Subsidy (CCS) aims to improve access to quality child care by
providing assistance to meet the cost of child care for families engaged in work,
training, study or other recognised activity.
Delivery
CCS will replace the Child Care Benefit (CCB) and Child Care Rebate (CCR) from
2 July 2018. CCS will be paid directly to services through the Department of Human
Services, to reduce the fees that eligible families pay.
The rate of subsidy to which a family will be entitled will be based on family income.
The number of subsidised hours per fortnight will be determined by families’ level of
work, training, study or other recognised activity (which can be combined). For families
earning $185,710 or less (in 2017–18 terms) an annual subsidy cap will no longer
apply.
To support the CCS, significant IT system development will be undertaken. The new IT
system will positively impact child care services, families and all levels of government
with streamlined processes, reduced administrative and regulatory burden and
increased information sharing.
Purpose
Department of Education and Training Corporate Plan 2016–2020

Goal 1: Access to quality child care
Measures impacting program 1.4:

Jobs for Families Package – upper income threshold
Performance information 1.4 Child Care Subsidy
Year
High level performance criteria
Expected achievement or target
2016–17
n/a
n/a
2017–18
Implement, and successfully transition families
and services to the Child Care Subsidy (CCS)
and related IT system built for 2 July 2018
commencement.
All eligible families and services are
ready to transition to CCS on
2 July 2018.
Child Care Subsidy (CCS) is implemented from
2 July 2018 and supports families to undertake
work, training, study or other recognised
activities.
Eligible families will start receiving CCS
from 2 July 2018.
2018–19
and beyond
IT system is ready for implementation on
2 July 2018.
Program expenses 1.4 Child Care Subsidy
2016–17
Estimated
actual
$'000
Special Appropriations:
A New Tax System (Family Assistance)
(Administration) Act 1999
-
Total expenses for program 1.4
33
2017–18
Budget
$'000
-
2018–19
Forward
estimate
$'000
8,755,068
8,755,068
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
9,565,605 10,003,857
9,565,605 10,003,857
Department of Education and Training Budget Statements
Program 1.5: Government Schools National Support
Objective
The program provides supplementary financial assistance to state and territory
governments to facilitate the delivery of a quality education within government schools.
Delivery
From 2018, the Australian Government’s Quality Schooling package will establish
fairer, needs-based school funding arrangements. These arrangements will be
underpinned by a new national schooling reform agreement, which will be developed
with the states, territories and the non-government schooling sector and based on
evidence of what works.
Recurrent grants – government schools
Recurrent funding for all schools, both government and non-government, is delivered
under the needs-based funding arrangements in the Australian Education Act 2013
informed by the Schooling Resource Standard (SRS). The SRS comprises a base
amount for every primary and secondary school student plus additional loadings to
target disadvantage, including loadings for:






students with low socioeconomic status
students with disability
Aboriginal and Torres Strait Islander students
students with low English proficiency
school size
location.
Independent Public Schools initiative
The program also provides funding for the Independent Public Schools initiative to
increase autonomy of government schools. This funding is delivered through project
agreements with states and territories. Projects aim to ensure principals and school
communities have greater local decision-making and can better cater for the individual
educational needs of students.
Additional funding for students with disabilities
Additional funding provided in 2016 and 2017 is targeted at schools where the
Nationally Consistent Collection of Data on School Students with Disability indicates a
funding need for students with disability.
Purpose
Department of Education and Training Corporate Plan 2016–2020

Goal 2: Quality schooling
Measures impacting program 1.5:

Quality Schools – true needs-based funding for Australia’s schools
Performance information 1.5 Government Schools National Support
Year
High level performance criteria
Expected achievement or target
2016–17
Work with state and territory governments to
deliver quality student outcomes.
Funding provided to state and territory
governments to support 100 per cent of
eligible students attending government
schools.
2017–18
Support state and territory governments to
deliver quality student outcomes by providing a
needs-based funding contribution for all eligible
students in government schools.
Funding for all eligible students
attending government schools provided
to state and territory governments in
accordance with the Australian
Education Act 2013.
2018–19
and beyond
As per 2017–18
As per 2017–18
34
Department of Education and Training Budget Statements
Additional performance criteria
Funded full-time equivalent student
enrolment projections 9
All full-time enrolments in
government schools: Indigenous
students 10,11
All full-time enrolments in
government schools: primary
students 10
All full-time enrolments in
government schools: secondary
students 10
2016–17
expected
2017–18
target
2018–19
target
2019–20
target
2020–21
target
2,470,000
2,511,000
2,554,000
2,597,000
2,639,000
178,000
183,000
188,000
194,000
199,000
1,519,000
1,561,000
1,598,000
1,621,000
1,640,000
947,000
955,000
971,000
998,000
1,040,000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
Program expenses 1.5 Government Schools National Support
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
Annual administered expenses:
Other services (Appropriation Act No. 2 and
Bill No. 4)
Additional Support for Northern Territory
Schools
Special Appropriations:
Australian Education Act 2013
Total expenses for program 1.5
9
10
11
-
1,629
4,987
8,575
12,804
6,498,273
6,498,273
7,079,669
7,081,298
7,570,915
7,575,902
8,139,861
8,148,436
8,730,154
8,742,958
Funded full-time equivalent student enrolment projections do not include unfunded
students such as full fee paying overseas students.
Targets relate to all full-time student enrolments in Australian schools in August each
financial year and include unfunded students such as full fee paying overseas students.
Indigenous student enrolments are a subset of primary and secondary student enrolments.
35
Department of Education and Training Budget Statements
Program 1.6: Non-Government Schools National Support
Objective
The program provides financial assistance to approved authorities for non-government
schools to facilitate the delivery of a quality education within non-government schools.
Delivery
From 2018, the Australian Government’s Quality Schooling package will establish
fairer, needs-based school funding arrangements. These arrangements will be
underpinned by a new national schooling reform agreement, which will be developed
with the states, territories and the non-government schooling sector and based on
evidence of what works.
Recurrent grants – non-government schools
Recurrent funding for all schools, both government and non-government, is delivered
under the needs-based funding arrangements in the Australian Education Act 2013
informed by the Schooling Resource Standard (SRS). The SRS comprises a base
amount for every primary and secondary school student plus additional loadings to
target disadvantage, including loadings for:






students with low socioeconomic status
students with disability
Aboriginal and Torres Strait Islander students
students with low English proficiency
school size
location.
Commonwealth recurrent funding for non-government schools supports the operating
costs of non-government schools and systems, and supplements funding raised by
schools from other sources. The base per-student amount is discounted by the
capacity of non-government school communities to contribute towards the operating
costs of the school.
Non-government representative bodies
Funding is provided to state and territory Catholic Education Commissions and
Associations of Independent Schools as non-government representative bodies. The
funding is to help non-government schools to implement national reforms.
Capital Grants Program
Capital funding is provided to assist non-government school communities to improve
school capital infrastructure, particularly for the most educationally-disadvantaged
students. Capital grants are supplementary to funding provided by the school
communities and non-government school authorities. These bodies have primary
responsibility for providing, maintaining and upgrading their school facilities.
Short Term Emergency Assistance
Special circumstances funding provides financial assistance to schools that are
experiencing unexpected circumstances causing severe, temporary financial difficulty.
Funding is provided under the Australian Education Act 2013.
Additional funding for students with disabilities
Additional funding provided in 2016 and 2017 is targeted at schools where the
Nationally Consistent Collection of Data on School Students with Disability indicates a
funding need for students with disability.
Purpose
Department of Education and Training Corporate Plan 2016–2020

Goal 2: Quality schooling
Measures impacting program 1.6:

Quality Schools – true needs-based funding for Australia’s schools
36
Department of Education and Training Budget Statements
Performance information 1.6 Non-Government Schools National Support
Year
High level performance criteria
Expected achievement or target
2016–17
Work with non-government education
authorities to deliver quality student outcomes.
Funding provided to non-government
education authorities to support
100 per cent of eligible students
attending non-government schools.
2017–18
Support non-government education authorities
to deliver quality student outcomes by providing
a needs-based funding contribution for all
eligible students in non-government schools.
Funding for all eligible students
attending non-government schools
provided to approved authorities in
accordance with the Australian
Education Act 2013.
2018–19
and beyond
As per 2017–18
As per 2017–18
Additional performance criteria
2016–17
expected
2017–18
target
2018–19
target
2019–20
target
2020–21
target
Funded full-time equivalent student
enrolment projections 12
1,312,000
1,325,000
1,339,000
1,352,000
1,366,000
240
240
240
240
240
35,000
36,000
38,000
39,000
40,000
All full-time enrolments in
non-government schools: primary
students 13
655,000
664,000
671,000
675,000
678,000
All full-time enrolments in
non-government schools:
secondary students 13
658,000
661,000
666,000
675,000
691,000
Number of schools assisted with
capital support
All full-time enrolments in
non-government schools:
Indigenous students 13,14
Program expenses 1.6 Non-Government Schools National Support
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
25,000
1,561
2,057
25,000
1,584
3,937
25,000
1,608
6,756
Annual administered expenses:
Other services (Appropriation Act No. 2 and
Bill No. 4)
Non-Government Representative Bodies
Short Term Emergency Assistance
Transition Assistance
Special Appropriations:
Australian Education Act 2013
Total expenses for program 1.6
12
13
14
41,167
1,519
-
12,500
1,539
631
10,553,936 11,121,558 11,661,326 12,278,078 12,931,154
10,596,622 11,136,228 11,689,944 12,308,599 12,964,518
Funded full-time equivalent student enrolment projections do not include unfunded
students such as full fee paying overseas students.
Targets relate to all full-time student enrolments in Australian schools as of August within
the financial year and include unfunded students such as full fee paying overseas students.
Indigenous student enrolments are a subset of primary and secondary student enrolments.
37
Department of Education and Training Budget Statements
Program 1.7: Early Learning and Schools Support
Objective
This program supports initiatives that contribute to improved access to high quality
teaching and learning in early learning and school education for all Australian students.
Delivery
This program supports national leadership and work in partnerships with state and
territory governments and non-government education authorities, the Australian
Curriculum, Assessment and Reporting Authority (ACARA), the Australian Institute for
Teaching and School Leadership (AITSL) and Education Services Australia (ESA)
through various platforms, such as Education Council, to implement priority initiatives.
Priority initiatives include:




Purpose
supporting early learning preschool programs to facilitate children’s transition to
full-time school
measuring educational outcomes through national assessments and international
benchmarking and building the national evidence base to inform decision making
supporting students to successfully transition to further education, training or work
by ensuring they gain the skills required for the jobs of the future through the
development of a National Career Education Strategy and implementing science,
technology, engineering and mathematics (STEM) initiatives, including the
Pathways in Technology (P-TECH) pilot
supporting disadvantaged students through the Learning for Life program.
Department of Education and Training Corporate Plan 2016–2020

Goal 2: Quality schooling
Measures impacting program 1.7:




Quality Schools – true needs-based funding for Australia’s schools
Closing the Gap – English language learning for Indigenous children trial
Framework for Opening Learning Program – efficiencies
National Partnership Agreement on Universal Access to Early Childhood Education – extension
Performance information 1.7 Early Learning and Schools Support
Year
High level performance criteria
Expected achievement or target
2016–17
Preschool
Preschool 15
Facilitate children’s early learning and
development and transition to school, by
maintaining universal access to, and improving
participation in, affordable, quality early
childhood education programs for all children.
95% of all children enrolled in the year
before full-time school in quality early
childhood education program(s).
95% of Indigenous children enrolled in
the year before full-time school in quality
early childhood education program(s).
95% of enrolled children enrolled in the
year before full-time school, in quality
early childhood education program(s) for
600 hours per year.
95% of enrolled Indigenous children
enrolled in the year before full-time
school, in quality early childhood
education program(s) for 600 hours per
year.
15
Targets as set under the National Partnership Agreement on Universal Access to Early
Childhood Education, which has been extended until the end of 2018.
38
Department of Education and Training Budget Statements
Year
High level performance criteria
Expected achievement or target
School
School
The department works collaboratively with
government and non-government sectors and
stakeholders to improve the quality of school
education for all Australian students.
Progress is made towards achievement
of key performance indicators in the
Measurement Framework for Schooling
in Australia 2015.
2017–18
As per 2016–17
As per 2016–17
2018–19
and beyond
As per 2017–18
As per 2017–18
2016–17
expected
2017–18
target
2018–19
target
2019–20
target
2020–21
target
5 new sites
4 new
sites
3 new
sites
n/a
n/a
Number of Associates commencing
in schools under Teach for
Australia 16
60
Up to 315
over two
years
Up to 315
over two
years
n/a
n/a
Cumulative number of additional
disadvantaged students
participating in the Learning for Life
program expansion
3,500
9,000
16,000
24,000
n/a
National School Chaplaincy
Programme: Number of schools
receiving support for chaplaincy
services
3,000
3,000
n/a
n/a
n/a
3,700 18
1,700
1,600
tbc
tbc
1,800
1,800
1,500
tbc
tbc
Additional performance criteria
P-TECH pilot is expanded to 12
new sites across Australia to
improve STEM capability
Helping Children with Autism
package: Number of teachers and
other school staff attending
professional development courses 17
Helping Children with Autism
package: Number of parents and
carers attending workshops and
information sessions 17
16
17
18
The Teach for Australia program operates on calendar years. The program will support an
additional 315 associates over the 2017 and 2018 calendar years.
Service delivery for Phase 3 of the Positive Partnerships program ends on 30 June 2019. An
evaluation of Phase 3 in 2018 will inform the development and implementation of Phase 4.
Expected achievement is higher than the target (1702) due to the introduction of a flexible
learning environment involving an online component in Phase 3 of the program.
39
Department of Education and Training Budget Statements
Program expenses 1.7 Early Learning and Schools Support
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
Annual administered expenses:
Ordinary annual services
(Appropriation Act No. 1 and Bill No. 3)
Australian Early Development Census
3,106
10,381
8,581
6,408
12,173
Australian Government Response to
TEMAG
4,300
4,100
3,700
Boost the Learning for Life Program
5,700
10,100
13,800
18,400
Early Learning Languages Australia
(ELLA)
4,312
1,622
Educating Against Domestic Violence
1,981
2,057
English Language Learning for
Indigenous Children
803
3,305
1,204
571
Flexible Literacy Learning for Remote
Primary Schools
6,200
1,600
Grants and Awards
1,353
1,353
1,353
1,373
1,394
Helping Children with Autism
5,737
5,818
5,899
5,988
6,078
Inspiring all Australians in Digital Literacy
and STEM
14,607
16,496
16,343
15,350
Maths and Science Participation
2,000
1,000
National Assessment Reform
10,220
2,200
2,200
2,200
National Schools Reform
15,000
15,210
15,453
15,685
Quality Outcomes
37,176
35,218
33,815
33,610
33,082
Science, Technology, Engineering and
Mathematics (STEM)
4,566
4,875
1,617
625
67
Teach for Australia
6,139
7,028
7,118
2,145
2,145
Universal Access
1,500
1,500
1,500
Special Account Expenses:
SOETM - Students with Disabilities (a)
2,583
578
Total expenses for program 1.7
111,480
119,529
114,441
102,756
73,395
(a) The special account holds funds on behalf of all governments for the implementation of the Nationally
Consistent Collection of Data on School Students with Disability (NCCD). The profiled expenditure
reflects projected implementation plans as agreed by the Joint Working Group to provide advice on
reforms for students with disability.
40
Department of Education and Training Budget Statements
Program 1.8: Youth Support
Objective
The program provides funding to support National Youth Week activities.
Delivery
The Government funds state and territory governments to undertake National Youth
Week activities. The events encourage young people to be engaged and active
participants in their communities.
Purpose
Department of Education and Training Corporate Plan 2016–2020

Goal 2: Quality schooling
Performance information 1.8 Youth Support
Year
High level performance criteria
Expected achievement or target
2016–17
Funding for National Youth Week activities is
provided directly to state and territory
governments.
State and territory governments run
National Youth Week activities within
their jurisdictions.
Program expenses 1.8 Youth Support
2016–17
Estimated
actual
$'000
Annual administered expenses:
Ordinary annual services
(Appropriation Act No. 1 and Bill No. 3)
Youth Engagement
Total expenses for program 1.8
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
535
-
-
-
-
535
-
-
-
-
41
Department of Education and Training Budget Statements
2.2
BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 2
Outcome 2: Promote growth in economic productivity and social wellbeing
through access to quality higher education, international education, and
international quality research, skills and training.
Programs contributing to Outcome 2

Program 2.1: Commonwealth Grants Scheme

Program 2.2: Higher Education Superannuation Program

Program 2.3: Higher Education Support

Program 2.4: Higher Education Loan Program

Program 2.5: Investment in Higher Education Research

Program 2.6: Research Capacity

Program 2.7: International Education Support

Program 2.8: Building Skills and Capability
- Sub-program 2.8.1: Industry Competitiveness
- Sub-program 2.8.2: Skills Development
- Sub-program 2.8.3: Access to Training
- Sub-program 2.8.4: Support for the National Training System
Linked programs
Australian Trade and Investment Commission (Austrade)
Programs

Program 1.1 - Promotion of Australia's export and other international economic interests
Contribution to Outcome 2 made by linked programs
The linked program contributes to Outcome 2 by promoting the Australian education and training sector in
international markets.
Department of Foreign Affairs and Trade
Programs


Program 1.6 - New Colombo Plan - Transforming Regional Relationships
Program 1.7 - Public Information Services and Public Diplomacy
Contribution to Outcome 2 made by linked programs
The linked programs contribute to Outcome 2 by promoting international education through advocacy and
coordination roles at overseas missions.
42
Department of Education and Training Budget Statements
Department of Human Services
Programs

Program 1.1 - Services to the Community - Social Security and Welfare
Contribution to Outcome 2 made by linked programs
The linked program contributes to Outcome 2 by making payments to eligible job seekers and recent
migrants participating in foundation skills programs.
Department of Social Services
Programs

Program 1.11 - Student Payments
Contribution to Outcome 2 made by linked programs
The linked program contributes to Outcome 2 by providing financial support to individuals and families to
undertake further education and training. This also includes enhancing educational outcomes for
Australian Indigenous students by increasing their access and participation in further education.
Department of the Treasury
Programs

Program 1.9 - National Partnership Payments to the States
Contribution to Outcome 2 made by linked programs
The linked program contributes to Outcome 2 through Specific Purpose Payments and National
Partnerships.
Department of Immigration and Border Protection
Programs

Program 2.3 Visas
Contribution to Outcome 2 made by linked programs
The linked program contributes to Outcome 2 by supporting a sustainable international education sector
through administering student visas.
43
Department of Education and Training Budget Statements
Budgeted expenses for Outcome 2
This table shows how much the entity intends to spend (on an accrual basis) on
achieving the outcome, broken down by program, as well as by administered and
departmental funding sources.
Table 2.2.1: Budgeted expenses for Outcome 2
Outcome 2: Promote growth in economic productivity and social wellbeing through access to quality
higher education, international education, and international quality research, skills and training.
2016–17
Estimated
actual
$'000
Program 2.1: Commonwealth Grant Scheme
Administered expenses
Special appropriations
6,921,842
Higher Education Support Act 2003
Total expenses for
6,921,842
program 2.1
2017–18
Budget
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
6,996,012
6,900,824
6,930,752
7,049,097
6,996,012
6,900,824
6,930,752
7,049,097
196,047
188,715
180,441
196,047
188,715
180,441
Program 2.2: Higher Education Superannuation Program
Administered expenses
Special appropriations
206,866
202,435
Higher Education Support Act 2003
Total expenses for
206,866
202,435
program 2.2
Program 2.3: Higher Education Support
Administered expenses
Ordinary annual services (Appropriation
Act No. 1 and Bill No. 3)
Special appropriations
Higher Education Support Act 2003
Special accounts
Education Investment Fund Higher Education
Total expenses for
program 2.3
2018–19
Forward
estimate
$'000
11,650
17,751
21,752
21,917
18,070
386,367
399,977
413,282
430,514
480,986
22,593
2,000
-
-
-
420,610
419,728
435,034
452,431
499,056
1,549,197
670,571
1,714,579
716,406
1,865,409
683,523
2,000,069
711,118
2,219,768
2,430,985
2,548,932
2,711,187
Program 2.4: Higher Education Loan Program
Administered expenses
Special appropriations
2,397,947
Higher Education Support Act 2003
288,482
VET Student Loans Act 2016
Total expenses for
2,686,429
program 2.4
44
Department of Education and Training Budget Statements
Table 2.2.1: Budgeted expenses for Outcome 2 (continued)
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
Program 2.5: Investment in Higher Education Research
Administered expenses
Special appropriations
1,777,885
1,943,204
Higher Education Support Act 2003
Total expenses for
1,777,885
1,943,204
program 2.5
Program 2.6: Research Capacity
Administered expenses
Ordinary annual services (Appropriation
Act No. 1 and Bill No. 3)
Special appropriations
Higher Education Support Act 2003
Payments to corporate entities (a)
Total expenses for
program 2.6
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
1,939,305
2,016,439
2,097,160
1,939,305
2,016,439
2,097,160
150,500
153,350
156,213
159,649
163,641
5,267
19,817
5,346
19,493
5,442
19,370
5,562
19,372
5,179
19,448
175,584
178,189
181,025
184,583
188,268
49,832
46,707
51,723
48,724
3,000
3,150
3,309
3,473
52,832
49,857
55,032
52,197
1,117,834
1,114,048
1,064,563
1,066,224
65,327
65,981
66,640
67,306
28,150
9,898
11,441
-
1,211,311
1,189,927
1,142,644
1,133,530
1,338,767
1,338,720
1,297,852
1,296,659
11,832,069
33,150
19,493
13,223,479
11,951,866
13,048
19,370
13,323,004
12,187,554
14,750
19,372
13,519,528
12,591,356
3,473
19,448
13,910,936
Program 2.7: International Education Support
Administered expenses
Ordinary annual services (Appropriation
Act No. 1 and Bill No. 3)
52,703
Special accounts
Overseas Student Tuition Fund
3,400
Total expenses for
56,103
program 2.7
Program 2.8 Building Skills and Capability
Administered expenses
Ordinary annual services (Appropriation
1,094,472
Act No. 1 and Bill No. 3)
Special appropriations
64,680
Trade Support Loans Act 2014
Special accounts
Growth Fund Skills and Training (b)
9,940
Total expenses for
1,169,092
program 2.8
Outcome 2 Totals by appropriation type
Administered expenses
Ordinary annual services (Appropriation
1,309,325
Act No. 1 and Bill No. 3)
Special appropriations
12,049,336
Special accounts
35,933
Payments to corporate entities (a)
19,817
Administered total 13,414,411
45
Department of Education and Training Budget Statements
Table 2.2.1: Budgeted expenses for Outcome 2 (continued)
2016–17
Estimated
actual
$'000
Departmental expenses
Departmental appropriation
173,426
s74 Retained revenue receipts (c)
12,859
Special accounts
1,720
Expenses not requiring appropriation in
18,819
the Budget year (d)
Departmental total
206,824
Total expenses for Outcome 2
13,621,235
Movement of administered
funds between years (e)
Outcome 2:
Growth Fund Skills and Training
Total movement of
administered funds
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
172,730
9,967
1,737
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
164,968
8,048
1,768
163,046
8,048
1,768
163,452
8,049
1,768
20,062
20,645
20,326
21,836
204,496
13,427,975
195,429
13,518,433
193,188
13,712,716
195,105
14,106,041
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
(221)
-
-
221
-
(221)
-
-
221
-
2016–17
2017–18
958
910
Average staffing level (number)
(a) Further information on payments to corporate entities can be found in the "Third Party Payments"
section of Table 1.1: Department of Education and Training Resource Statement.
(b) This special account is funded by Annual Appropriation Bill (No. 1) and receipts from independent
sources.
(c) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act 2013.
(d) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,
amortisation expenses, make good expenses, and audit fees.
(e) Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an
increase in funds.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the budget year as government priorities change.
46
Department of Education and Training Budget Statements
Performance criteria for Outcome 2
This section details the performance criteria for each program associated with
Outcome 2. It summarises how each program is delivered and where 2017–18 Budget
measures have created new programs or materially changed existing programs.
Outcome 2: Promote growth in economic productivity and social wellbeing
through access to quality higher education, international education, and
international quality research, skills and training.
Program 2.1: Commonwealth Grant Scheme
Objective
A highly skilled workforce and educated community is important for economic
productivity and social wellbeing. The Commonwealth Grant Scheme (CGS)
contributes to achieving this objective through:




Delivery
making a direct contribution to the cost of educating all Commonwealth supported
students enrolled in undergraduate and postgraduate degrees
increasing the number of regional students participating in higher education by
providing additional funding to regional universities to meet the higher costs
associated with delivery of higher education in regional locations
supporting educationally disadvantaged students to prepare for and successfully
complete higher education through funding for enabling courses
meeting medical workforce training needs through the provision of targeted
support for initial-entry medical programs.
The CGS subsidises the tuition costs for higher education students enrolled in
undergraduate and selected postgraduate degrees at public universities. CGS funding
also supports a limited number of student places in designated national priority areas
at other higher education providers.
The Government provides funding to universities, in instalments, on a demand-driven
basis for all domestic students enrolled in a bachelor degree at a public university. This
funding reduces the direct cost to students in Commonwealth Supported Places.
Limited funding is also provided for students enrolled in a sub-degree and
postgraduate degree programs based on an agreed amount in Funding Agreements
with public universities.
Purpose
Department of Education and Training Corporate Plan 2016–2020


Goal 3: World-class tertiary education and research
Goal 4: Skilled workforce
Measures impacting program 2.1:



Higher Education Reform – a fairer and student-focused higher education system
Higher Education Reform – a more sustainable higher education sector
Unlegislated Budget Repair Measures – not proceeding
47
Department of Education and Training Budget Statements
Performance information 2.1 Commonwealth Grant Scheme
Year
High level performance criteria
Expected achievement or target
2016–17
Government makes a direct contribution to the
cost of higher education to provide equitable
access and support Australia’s intellectual and
economic development.
All domestic students accepted into a
bachelor level course at a public
university are provided with a
Commonwealth Supported Place.
2017–18
As per 2016–17
As per 2016–17
2018–19
and beyond
As per 2017–18
As per 2017–18
Additional performance
criteria 19,20
Number of Commonwealth
supported domestic undergraduate
places
2016–17
Expected 21
2017–18
Target
2018–19
Target
2019–20
Target
2020–21
Target
581,300
582,500
585,000
595,000
601,100
40,700
42,800
42,500
42,300
42,100
9,700
9,700
9,500
9,500
9,500
13,100
13,200
13,200
13,300
13,400
Number of regional and remote
students participating in higher
education 22
216,000
218,000
219,000
222,000
225,000
Number of domestic undergraduate
completions
144,000
145,000
146,000
148,000
150,000
71,000
74,000
74,000
74,000
75,000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
Number of Commonwealth
supported domestic postgraduate
coursework places
Number of enabling places
Number of Commonwealth Grant
Scheme (CGS) medical places
Number of domestic postgraduate
coursework completions
Program expenses 2.1 Commonwealth Grant Scheme
2016–17
Estimated
actual
$'000
Special Appropriations:
Higher Education Support Act 2003
Cluster Fund and Place Loadings
Regional Loading
Total expenses for program 2.1
19
20
21
22
6,851,052
70,790
6,921,842
2017–18
Budget
$'000
6,925,065
70,947
6,996,012
6,830,509
70,315
6,900,824
6,859,930
70,822
6,930,752
2020–21
Forward
estimate
$'000
6,976,753
72,344
7,049,097
Data is by calendar year e.g. 2016–17 relates to the 2016 calendar year.
New or modified performance criteria or targets that reflect material changes as a result of
Budget measures are shown in italics.
Final figures for 2016 will be published in the second half of 2017 at
www.education.gov.au/higher-education-statistics.
Table A and B universities only. Regional and remote categories as defined by the Australian
Bureau of Statistics www.abs.gov.au/ausstats/[email protected]/mf/1270.0.55.001.
48
Department of Education and Training Budget Statements
Program 2.2: Higher Education Superannuation Program
Objective
The program provides supplementary funding to assist eligible universities to meet
certain superannuation expenses for eligible current and former university employees
who are members of identified state government emerging cost superannuation
schemes.
Cost-share arrangements are in place with relevant state governments and a
proportion of Higher Education Superannuation Program (HESP) funding is recovered
from these states as a result of their historical responsibilities for funding higher
education.
These schemes have been closed to new members for some time but are still active
for existing members.
Delivery
The program is demand driven. Funding is paid to eligible universities in instalments
based on verified annual claims for payment. University claims are based on the
emerging costs charged by the identified state government emerging cost
superannuation funds for payments to eligible retirees. Funding is administered in
accordance with the Higher Education Support Act 2003 Other Grants Guidelines
(Education) 2012.
Purpose
Department of Education and Training Corporate Plan 2016–2020

Goal 3: World-class tertiary education and research
Performance information 2.2 Higher Education Superannuation Program
Year
High level performance criteria
Expected achievement or target
2016–17
The department works with eligible universities
to ensure accurate projections of future eligible
superannuation expenses.
Demand for funding will increase as
remaining eligible staff retire and is
expected to peak around 2020.
All instalments are paid on time to the 27
eligible Table A universities.
2017–18
The department works with eligible universities
to provide payments to meet certain
superannuation expenses for eligible current
and former university employees.
Instalments are paid on time to the
27 eligible Table A universities.
2018–19
and beyond
As per 2017–18
As per 2017–18
Program expenses 2.2 Higher Education Superannuation Program
Special Appropriations:
Higher Education Support Act 2003
Higher Education Superannuation
Program
Total expenses for program 2.2
2016–17
Estimated
actual
$'000
2017–18
Budget
206,866
206,866
202,435
202,435
49
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
196,047
196,047
188,715
188,715
180,441
180,441
Department of Education and Training Budget Statements
Program 2.3: Higher Education Support
Objective
The program aims to ensure the quality of our higher education system is maintained
and improved, including improving the quality of training for teachers of mathematics
and science. The program also aims to improve access to, and the education
outcomes for, students from disadvantaged backgrounds.
Delivery
Quality in learning and teaching
The program includes a range of activities that help to focus on quality, promote the
enhancement of learning and teaching, and provide better information for student
choice. This includes:






administration of the Quality Indicators for Learning and Teaching (QILT) which is
delivered through the QILT website
promoting and supporting the enhancement of learning and teaching to higher
education institutions including by supporting Universities Australia to deliver the
Australian Awards for University Teaching (AAUT) from 2018
supporting the ongoing operations of quality National Institutes
driving major improvements in the quality and teaching of mathematics and
science through grants
Supporting more women in STEM and improving the quality of PhD student
research training by providing industry based internships through Australian
Mathematical Sciences Institute (AMSI) Internships
improving infrastructure for higher education through project grants supported by
the Education Investment Fund (EIF).
Access and participation in higher education
The program includes a range of activities to improve access to and participation in
higher education. This includes activities to support:




people with low socio-economic status (low SES) backgrounds
Aboriginal and Torres Strait Islanders
students with disability
students from regional and remote areas.
Delivery activities include:




the Higher Education Participation and Partnerships Program (HEPPP), which
funds universities to improve access to, and participation and success in higher
education for, students from low SES backgrounds
the Higher Education Disability Support Program (DSP), which aims to remove
barriers to access for students with disability to higher education through the
provision of specialised equipment and educational support services
the National Disability Coordination Officer Program, which provides a national
network of regionally based officers who work strategically to assist people with
disability to transition from school to tertiary education and subsequent
employment
the Rural and Regional Enterprise Scholarships program, which offers
scholarships to regional and remote students to undertake science, technology,
engineering and mathematics (STEM) studies.
Key changes to delivery activities in 2017–18 include:



Purpose
a new grant to Deakin University to rejuvenate its Warrnambool campus to allow
students in South West Victoria to retain access to higher education
implementing a reformed funding model for HEPPP to introduce a loading per low
SES student and a performance component that rewards improvements in the
success rate for undergraduate low SES and Indigenous students
implementing revised funding arrangements for DSP to provide eligible
universities with increased flexibility in use of the funds to support students with
disability.
Department of Education and Training Corporate Plan 2016–2020

Goal 3: World-class tertiary education and research
50
Department of Education and Training Budget Statements
Measures impacting program 2.3:





Higher Education Reform – a fairer and student-focused higher education system
Higher Education Reform – a more sustainable higher education sector
Unlegislated Budget Repair Measures – not proceeding
Central Coast Health and Medical Campus – additional funding
Rural and Regional Enterprise Scholarships – establishment
Performance information 2.3 Higher Education Support
Year
High level performance criteria 23
Expected achievement or target
2016–17
The Student Experience Survey, the Graduate
Outcomes Survey and the Employer
Satisfaction Survey are conducted.
All surveys were conducted in 2016–17.
Expand the IT architecture to collect and store
future earnings data for the Quality Indicators
for Learning and Teaching project on a
protected server. This includes qualitative
coding and analysis of data.
IT architecture in place by end 2016–17.
The Higher Education Participation Program will
be evaluated.
An independent evaluation of the Higher
Education Participation Program was
completed in March 2017.
The Government will implement its response to
the evaluation of the Higher Education Disability
Support Program.
Public consultation conducted in
November 2016 on a draft response to
the evaluation of the Higher Education
Disability Support Program. Program
guidelines to be amended.
A focus on quality and informed student choice
is maintained in the higher education system.
At least 81 per cent of undergraduate
students rate the teaching quality at their
institution positively. 24
2017–18
Future earnings data made available on
the Quality Indicators for Learning and
Teaching website.
2018–19
and beyond
Increase student participation in higher
education, including by previously
under-represented groups.
Continued growth in the number and
proportion of low SES and Indigenous
undergraduate students.
Rural and Regional Enterprise Scholarships
support participation in higher education by
regional and remote students.
A cumulative total of 1200 scholarships
will be awarded by 2020–21.
As per 2017–18
As per 2017–18
Additional performance criteria
Number of learning and teaching
citations and awards provided at the
Australian Awards for University
Teaching 25
23
24
25
2016–17
Expected
2017–18
Target
2018–19
Target
2019–20
Target
2020–21
Target
136
180
n/a
n/a
n/a
New or modified performance criteria or targets that reflect material changes as a result of
Budget measures are shown in italics.
Benchmark as set by the 2016 Student Experience Survey.
The Promotion of Excellence in Learning and Teaching in Higher Education program
terminates at the end of calendar year 2017.
51
Department of Education and Training Budget Statements
Additional performance criteria
2016–17
Expected
2017–18
Target
2018–19
Target
2019–20
Target
2020–21
Target
86.4%
87.0%
87.0%
87.7%
87.7%
$57,900
$59,200
$60,700
$62,700
$64,800
125,000
127,000
128,000
131,000
133,000
16.0%
16.1%
16.2%
16.3%
16.4%
139,000
141,000
142,000
145,000
148,000
17.8%
17.9%
18.0%
18.1%
18.2%
17,400
18,900
20,400
22,100
23,900
1.7%
1.8%
1.9%
2.0%
2.2%
Number of Indigenous completions
at funded institutions
2,330
2,520
2,730
2,950
3,190
Supporting more women in STEM
careers—number of industry based
PhD internships
100
200
400
700
n/a
The proportion of undergraduates
employed within four months of
completion of degree
Median undergraduate starting
salaries of graduates employed
full-time
Number and proportion of domestic
undergraduates from a low SES
background (based on Statistical
Area Level 1) 26
Number and proportion of domestic
undergraduate students from a low
SES background (based on
postcode) 27
Number and proportion of
Indigenous students in higher
education at funded institutions 28
26
27
28
Measured at the Statistical Area Level 1, as defined by the Australian Bureau of Statistics,
http://www.abs.gov.au/ausstats/[email protected]/mf/1270.0.55.001
Measured at the postcode level, as defined by the Australian Bureau of Statistics
http://www.abs.gov.au/ausstats/[email protected]/mf/2033.0.55.001
The Australian Bureau of Statistics estimates that 2.7 per cent of Australia’s working age
(15-64 years) population is of Aboriginal or Torres Strait Islander descent.
52
Department of Education and Training Budget Statements
Program expenses 2.3 Higher Education Support
2016–17
Estimated
actual
$'000
Annual administered expenses:
Ordinary annual services
(Appropriation Act No. 1 and Bill No. 3)
National Disability Coordination Officer
Quality Indicators for Learning and Teaching
Rural and Regional Enterprise Scholarships
Teaching Awards - Universities Australia
Special Appropriations:
Higher Education Support Act 2003
Central Coast Health and Wellbeing
Precinct
Disability Support Program
Diversity and Structural Reform
Higher Education Partnerships and
Participation Program
Improved Support for Regional
Universities
Jobs and Growth in Tasmania
National Institutes
Promotion of Excellence in Learning and
Teaching in Higher Education
Quality Initiatives
Supporting more women into STEM
Careers (AMSI Intern)
Special Account Expenses:
Education Investment Fund Higher Education
Total expenses for program 2.3
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
4,309
7,341
-
4,309
8,842
4,000
600
4,309
8,843
8,000
600
4,374
8,943
8,000
600
4,435
9,035
4,000
600
7,335
7,000
1,250
7,445
7,000
2,500
7,568
-
2,500
7,720
-
2,500
7,886
-
147,801
140,218
145,461
150,509
155,977
214,353
4,443
10,000
218,905
5,530
20,000
222,520
2,198
30,000
226,974
2,246
80,000
231,853
5,096
2,482
3,621
495
503
513
524
2,300
6,600
9,200
10,100
-
22,593
420,610
2,000
419,728
435,034
452,431
499,056
53
Department of Education and Training Budget Statements
Program 2.4: Higher Education Loan Program
Objective
The program aims to remove the up-front cost barriers to tertiary education and
training in order to increase access and participation. This is achieved through the
provision of income contingent loans for students undertaking higher education
courses and in certain higher level vocational education and training (VET) courses.
Delivery
The program is delivered through the following activities:






HECS-HELP—provides loans to eligible Commonwealth supported higher
education students to pay their student contributions
FEE-HELP—provides loans to eligible fee-paying higher education students to
pay all or part of their tuition fees
OS-HELP—provides loans to eligible Commonwealth supported higher education
students who wish to undertake some of their Australian course of study overseas
SA-HELP—provides loans to eligible higher education students to pay Student
Services and Amenities Fees charged by their higher education providers
VET-FEE-HELP—provides loans to eligible students to pay all or part of their
tuition fees for VET accredited diploma, advanced diploma, graduate certificate
and graduate diploma courses. The VET-FEE-HELP scheme closed to new
students on 31 December 2016 and will only be accessible to students who are
grandfathered within the scheme to complete their studies
VET Student Loans—provides loans to eligible students to pay for part or all of
their tuition fees for eligible higher level VET courses, subject to loan caps for
each eligible course and fee limits for approved providers. VET Student Loans
commenced on 1 January 2017, replacing VET-FEE-HELP.
Student HELP loan amounts are paid by the Government directly, in instalments, to
approved providers on a demand-driven basis for all domestic students who have
accessed a HELP loan.
Repayment of debt commences once an individual’s HELP repayment income reaches
a certain level. Repayments are made to the Australian Taxation Office through the
taxation system.
Purpose
Department of Education and Training Corporate Plan 2016–2020


Goal 3: World-class tertiary education and research
Goal 4: Skilled workforce
Measures impacting program 2.4:



Higher Education Reform – a fairer and student-focused higher education system
Higher Education Reform – a more sustainable higher education sector
Unlegislated Budget Repair Measures – not proceeding
Performance information 2.4 Higher Education Loan Program
Year
High level performance criteria
Expected achievement or target
2016–17
Growth in access to higher education and
eligible VET courses for students who may
have been otherwise deterred by upfront costs
– as evidenced by growth in HELP loans.
There has been steady growth in the
number of Australians accessing HELP
loans. This growth in access in turn
produces economic gains for individuals
and society.
HELP debts are affordable for both students
and the community.
Key indicators demonstrate HELP
scheme remains affordable, including:



2017–18
Growth in access to higher education and
eligible VET courses for students who may
have been otherwise deterred by upfront costs
– as evidenced by growth in HELP loans.
54
average HELP debt
time to repay
debt not expected to be repaid.
Steady growth in the number of
Australians accessing HELP loans,
which in turn produces economic gains
for individuals and society.
Department of Education and Training Budget Statements
Year
High level performance criteria
Expected achievement or target
HELP debts are affordable for both students
and the community.
Key indicators demonstrate HELP
scheme remains affordable, including:



2018–19
and beyond
average HELP debt
time to repay
debt not expected to be repaid.
VET students have improved employment
prospects as training choices are better aligned
with industry needs.
Proportion of VET Student Loans
students studying for job or
business-related reasons is more than
80 per cent.
As per 2017–18
As per 2017–18
Additional performance criteria 29
2016–17
Expected
2017–18
Target
2018–19
Target
2019–20
Target
2020–21
Target
Number of Commonwealth
supported places for which
HECS-HELP loans paid
533,000
552,100
556,000
579,100
588,300
Number of places for which
FEE-HELP loans paid
88,500
84,300
135,100
141,600
148,800
Number of OS-HELP loans to assist
students to undertake some of their
course overseas
16,800
18,100
19,900
20,000
20,000
Number of SA-HELP loans to assist
students to pay their services and
amenities fees
515,400
502,300
606,200
617,400
625,000
Average amount of HELP debt ($)
20,700
22,000
23,400
24,900
26,500
Average number of years to repay
HELP debt
8.9
9.1
9.2
9.3
9.5
23%
17%
17%
18%
18%
Proportion of new debt not
expected to be repaid
Program expenses 2.4 Higher Education Loan Program
2016–17
Estimated
actual
$'000
Special Appropriations:
Higher Education Support Act 2003
Higher Education Loan Program
VET Student Loans Act 2016
VET Student Loans
Total expenses for program 2.4
29
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
2,397,947
1,549,197
1,714,579
1,865,409
2,000,069
288,482
2,686,429
670,571
2,219,768
716,406
2,430,985
683,523
2,548,932
711,118
2,711,187
New or modified performance criteria or targets that reflect material changes as a result of
Budget measures are shown in italics.
55
Department of Education and Training Budget Statements
Program 2.5: Investment in Higher Education Research
Objective
The Australian Government is committed to a world-class research system, that
encourages innovation and economic growth. Quality collaboration, engagement,
diversity, impact and sustainability are the key priorities for the Government and drive
its investment in Australian research and research capacity.
Delivery
The program is delivered through annual research block grants to Australian higher
education providers to support:


their research activities and ensure the delivery of a world-class research system
the research training of higher degree by research students and meet the skills
needs of the Australian and international research community.
Together with competitive research grants, research block grants ensure the provision
of a high performing research system.
Purpose
Department of Education and Training Corporate Plan 2016–2020

Goal 3: World-class tertiary education and research
Measures impacting program 2.5:

Unlegislated Budget Repair Measures – not proceeding
Performance information 2.5 Investment in Higher Education Research
Year
High level performance criteria
Expected achievement or target
2016–17
New program guidelines for block grants to
strengthen incentives for university-industry
engagement will be developed in consultation
with universities and other stakeholders. The
new arrangements will be implemented by
1 January 2017.
New legislative guidelines were
registered in October 2016 and the new
arrangements commenced on
1 January 2017.
Develop quantitative and qualitative measures
of engagement and impact for piloting in 2017
in consultation with universities, industry and
other end users.
The Australian Research Council is
conducting a pilot of engagement and
impact assessment in the first half of
2017. The results from this pilot will
inform engagement and impact
measures for this program.
The performance of the block grants in
supporting the university research system will
be measured in terms of capacity, quality,
collaboration, student completions and student
employability.
Australian universities continue to be
ranked highly in measures such as
research outputs and international
research rankings.
As per 2017–18
New indicators introduced in 2018 will
show increasing industry engagement
and higher degree by research
completions.
2017–18
2018–19
and beyond
Additional performance criteria
Number of higher degree by
research student completions 30
30
Higher degree by research graduates
will continue to have relatively high
employability, earnings and course
satisfaction.
2016–17
Expected
2017–18
Target
2018–19
Target
2019–20
Target
2020–21
Target
9,500
11,000
11,500
12,000
12,500
Data only relates to Table A and B providers under the Higher Education Support Act 2003.
56
Department of Education and Training Budget Statements
Additional performance criteria
2016–17
Expected
2017–18
Target
2018–19
Target
2019–20
Target
2020–21
Target
Growth in the number of higher
degree by research completions by
Indigenous students as a proportion
of domestic completions
n/a
0.7%
≥0.7%
≥0.8%
≥0.9%
Proportion of research rated as
world standard or above in
Excellence for Research in
Australia process
n/a
87%
≥87%
≥87%
≥87%
90.3%
90.9%
90.9%
91.7%
91.6%
Proportion of postgraduate research
graduates in employment within
four months of completion of degree
Program expenses 2.5 Investment in Higher Education Research
2016–17
Estimated
actual
$'000
Special Appropriations:
Higher Education Support Act 2003
Australian Post Graduate Awards
International Post Graduate Research
Joint Research Engagement Scheme
Research Infrastructure Block Grants
Research Investment Adjustment
Scheme
Research Support Program
Research Training Scheme
Research Training Program
Sustainable Research Excellence
Total expenses for program 2.5
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
142,209
11,319
181,633
122,107
-
-
-
-
402,215
345,010
505,953
67,439
1,777,885
923,709
1,019,495
1,943,204
902,977
1,036,328
1,939,305
959,366
1,057,073
2,016,439
1,017,366
1,079,794
2,097,160
57
Department of Education and Training Budget Statements
Program 2.6: Research Capacity
Objective
Research advances our knowledge and drives our potential for innovation, economic
competitiveness and social change. The program aims to increase the production, use
and awareness of research knowledge and to improve collaboration between
government, industry and the research sector in the production of research knowledge.
Delivery
The program invests in Australia’s research capacity by providing financial support to
organisations, including universities, learned academies and other research
organisations.
Activities under this program include:





Purpose
supporting the costs of operating and maintaining capabilities funded through
grants under the National Collaborative Research Infrastructure Strategy (NCRIS)
supporting training of specialised cyber security professionals in Academic
Centres of Cyber Security Excellence (ACCSE) in Australian universities
supporting knowledge and public policy capability in national security through
funding provided to the Australian National University’s National Security College
promoting the central role of research, science and technology, including through
funding provided to Australia’s learned academies and other organisations under
the Higher Education Research Promotion (HERP) scheme
providing funding to and supporting the governance of the Australian Institute of
Aboriginal and Torres Strait Islander Studies (AIATSIS).
Department of Education and Training Corporate Plan 2016–2020

Goal 3: World-class tertiary education and research
Measures impacting program 2.6:

National Science and Innovation Agenda – Research Infrastructure Investment Plan – development
Performance information 2.6 Research Capacity
Year
High level performance criteria
Expected achievement or target
2016–17
Finalisation of the National Research
Infrastructure Roadmap in 2016 to guide future
national research infrastructure investment,
including NCRIS investments.
The report was provided to Government
in February 2017.
NCRIS project agreements executed for funding
commencing 1 July 2017.
NCRIS supports national research
capability through a network of projects
and facilities, delivered through
222 institutions employing over
1700 highly skilled technical experts,
researchers and facility managers.
The NCRIS network is used by over
35,000 researchers, both domestically
and internationally.
Australia’s learned academies provide the
Government and the Australian community with
access to quality, independent advice informed
by the latest research and scientific evidence on
national and international matters.
Australia’s learned academies delivered
a range of submissions and reports that
provided cutting edge research and
advice to the government and private
sector on issues of national and
international importance.
58
Department of Education and Training Budget Statements
Year
High level performance criteria
Expected achievement or target
2017–18
Australia’s learned academies provide the
Government and the Australian community with
access to quality, independent advice informed
by the latest research and scientific evidence on
national and international matters.
As per 2016–17
NCRIS network research infrastructure provides
services to researchers from the public and
private sectors.
NCRIS network is used by over 35,000
researchers, both domestically and
internationally.
As per 2017–18
As per 2017–18
2018–19
and beyond
Program expenses 2.6 Research Capacity
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
Annual administered expenses:
Ordinary annual services
(Appropriation Act No. 1 and Bill No. 3)
Commonwealth - ANU Strategic
Relationships
500
500
National Collaborative Research
Infrastructure Strategy
150,000
152,850
156,213
159,649
163,641
Special Appropriations:
Higher Education Support Act 2003
Academic Centres of Cyber Security
Excellence
463
470
479
489
Higher Education Research Promotion
4,804
4,876
4,963
5,073
5,179
Payments to Corporate Entities (a):
AIATSIS
19,817
19,493
19,370
19,372
19,448
175,584
178,189
181,025
184,583
188,268
Total expenses for program 2.6
(a) Further information on payments to corporate entities can be found in the "Third Party Payments"
section of Table 1.1: Department of Education and Training Resource Statement.
59
Department of Education and Training Budget Statements
Program 2.7: International education support
Objective
International education is increasingly important to Australia’s prosperity and our
engagement with the world. The program aims to support the sustainable growth of
Australia’s high quality international education, training and research through strong
government-to-government engagement, international mobility, strategic policy and
legislation.
Delivery
The National Strategy for International Education sets a ten year vision for Australian
international education and provides a framework of priorities to sustainably grow the
sector, while maintaining Australia’s reputation for high quality. The program delivers
this vision through the following activities:



Purpose
individual and institutional grants to support in-bound and out-bound students,
researchers and professionals to undertake projects and study exchanges through
the Endeavour program
government-to-government engagement including bilateral working groups and
multilateral agreements to facilitate institutional relationships, student and
researcher mobility, and strengthen Australia’s position in the highly competitive
global international education marketplace
policy and legislation for international students to receive an effective, risk-based,
quality assured education, including consumer protection underpinned by the
Education Services for Overseas Students Act 2000.
Department of Education and Training Corporate Plan 2016–2020

Goal 3: World-class tertiary education and research
Performance information 2.7 International education support
Year
High level performance criteria
Expected achievement or target
2016–17
Complete a (biennial) national satisfaction
survey of international students to determine if
international students continue to be satisfied
with their study and living experience in
Australia.
Latest student satisfaction measures
remain above 80 per cent.
National Strategy for International Education will
support a range of activities to enhance
international education’s contribution to
Australia’s economic prosperity and social
well-being.
Projects to advance the objectives of the
National Strategy for International
Education commence.
Continue building the strategic connections
which benefit both international and Australian
students and lead to enduring relationships with
other nations to support world-class education
and research.
International Counsellor Network
continues to maintain and enhance
relationships in key countries and
regions.
Build strategic connections that benefit both
international and Australian students and lead
to enduring relationships with other nations to
support world-class education and research.
International Counsellor Network
continues to maintain and enhance
relationships in key countries and
regions.
National Strategy for International Education
supports a range of activities to enhance
international education’s contribution to
Australia’s economic prosperity and social
well-being.
Further projects to advance the
objectives of the National Strategy for
International Education will be rolled out.
2017–18
60
The Australia Awards-Endeavour
Scholarships, Fellowships and Mobility
Grants support Australian and overseas
recipients to undertake study, research
and professional development.
Department of Education and Training Budget Statements
Year
High level performance criteria
Expected achievement or target
2018–19
and beyond
As per 2017–18
As per 2017–18
Additional performance criteria
2016–17
Expected
2017–18
Target
2018–19
Target
2019–20
Target
2020–21
Target
Proportion of international student
survey respondents who are
satisfied or very satisfied with
studying in Australia
87%
>80%
>80%
>80%
>80%
Proportion of international student
survey respondents who are
satisfied or very satisfied with living
in Australia
89%
>80%
>80%
>80%
>80%
Program expenses 2.7 International education support
2016–17
Estimated
actual
$'000
Annual administered expenses:
Ordinary annual services
(Appropriation Act No. 1 and Bill No. 3)
International Education Support
Special Account Expenses:
Overseas Student Tuition Fund
Total expenses for program 2.7
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
52,703
49,832
46,707
51,723
48,724
3,400
56,103
3,000
52,832
3,150
49,857
3,309
55,032
3,473
52,197
61
Department of Education and Training Budget Statements
Program 2.8: Building skills and capability
Sub-program 2.8.1 Industry competitiveness
Objective
This program component facilitates training to ensure Australian businesses’
competitiveness in domestic and global markets.
Delivery
The Industry Skills Fund (ISF) provides employers with training grants in priority areas
and in other industries that are focused on growth opportunities. Training grants are
provided through a co-contribution reimbursement funding model.
The ISF closed to new applications on 31 December 2016. The ISF will continue to
deliver assistance to businesses already participating until 2018–19. ISF Skills Adviser
services ceased on 31 January 2017.
Purpose
Department of Education and Training Corporate Plan 2016–2020

Goal 4: Skilled workforce
Performance information 2.8.1 Industry competitiveness
Year
High level performance criteria
Expected achievement or target
2016–17
Training grants are prioritised to micro and
small businesses through the Industry Skills
Fund (ISF).
Over 71 per cent of grants under the ISF
were awarded to micro and small business.
2017–18
n/a
n/a
Sub-program 2.8.2 Skills development
Objective
This program component is designed to develop the skills of the Australian workforce
through support for skills-based training, including Australian Apprenticeships.
Delivery
This component provides support and incentives for skills-based training, including:
Australian Apprenticeships
Assistance is provided in the form of financial incentives to employers and through
allowances and loans to individuals participating in apprenticeships. The program
includes contractual arrangements with a national network of Australian
Apprenticeship Support providers who administer incentives, loans and support
apprentices and their employers through to completion of the apprenticeship.
South Australian Enterprise Scholarships
Scholarships will be provided to support undergraduate, postgraduate and vocational
education and training students to undertake an industry based work placement in
priority industries in South Australia.
Purpose
Department of Education and Training Corporate Plan 2016–2020

Goal 4: Skilled workforce
Measures impacting program 2.8.2:

Industry Specialist Mentoring for Australian Apprentices – establishment
62
Department of Education and Training Budget Statements
Performance information 2.8.2 Skills development
Year
High level performance criteria
Expected achievement or target
2016–17
Increase the completion rates of Australian
Apprentices.
Completion rates of Australian
Apprentices increased in comparison to
the prior reporting year.
Scholarships improve students' skills and
employment opportunities to support priority
industries in South Australia.
Program guidelines developed, with the
first round of scholarships to be offered
in 2017–18.
Evaluation of the Trade Support Loans
program.
Program evaluation commenced in
April 2017 and will be completed in
2017–18.
Increase the completion rates of Australian
Apprentices.
Australian Apprentices increase in
comparison to prior reporting periods.
Scholarships are awarded in priority industries
in South Australia.
Up to 1200 scholarships will be funded
over four years.
As per 2017–18
As per 2017–18
2017–18
2018–19
and beyond
Additional performance criteria
2016–17
Expected
2017–18
Target
2018–19
Target
2019–20
Target
2020–21
Target
Total number of employers who
have received a payment under the
Australian Apprenticeships
Incentives Program (AAIP) 31
51,000
51,000
51,000
51,000
51,000
Trade Support Loans - Number of
Australian Apprentices in receipt of
Trade Support Loan payments
45,000
45,000
45,000
45,000
45,000
31
The AAIP is a demand driven program. The forecast of 79,000 employers receiving a
payment in 2016–17 was not met due to a range of factors including: the economy; the
activities of training providers; and financial incentives and subsidies provided by both the
state and federal Governments.
63
Department of Education and Training Budget Statements
Sub-program 2.8.3 Access to training
Objective
This program component is designed to provide clearer pathways and improved
access to training which allows Australians to obtain jobs and progress to better career
opportunities.
Delivery
Funding is provided to organisations to deliver foundation skills training to eligible
individuals, including job seekers and recent migrants. Improved foundation skills
enable people to access further training, or gain employment, and better participate in
Australian society.
Purpose
Department of Education and Training Corporate Plan 2016–2020

Goal 4: Skilled workforce
Measures impacting program 2.8.3:

Skills for Education and Employment Program – efficiencies
Performance information 2.8.3 Access to training
Year
High level performance criteria
Expected achievement or target 32
2016–17
Eligible job seekers are assisted to improve
their Language, Literacy and Numeracy (LLN)
skills in order to participate effectively in further
training or in the workforce.
22,856 (annual target of 24,440) eligible
job seekers supported by the Skills for
Education and Employment Program.33
Eligible migrants and humanitarian entrants are
assisted in acquisition of English language
enabling better workforce participation and
settlement in the broader Australian community.
63,733 (annual target of 63,665) eligible
migrants and humanitarian entrants
supported by the Adult Migrant English
Program.34
Improvement in LLN skills through the Skills for
Education and Employment Program training
enabling more effective participation in further
training or the labour force.
17,100 eligible job seekers supported by
the Skills for Education and Employment
Program.
Improved English language skills through
participation in Adult Migrant English Program
training.
63,671 eligible migrants and
humanitarian entrants supported by the
Adult Migrant English Program.
Improvement in LLN skills through the Skills for
Education and Employment Program training
enabling more effective participation in further
training or the labour force.
17,250 eligible job seekers supported by
the Skills for Education and Employment
Program in 2018–19.
Improved English language skills through
participation in Adult Migrant English Program
training.
As per 2017–18
2017–18
2018–19
and beyond
32
33
34
17,300 eligible job seekers supported by
the Skills for Education and Employment
Program in 2019–20 and 2020–21.
New or modified performance criteria or targets that reflect material changes as a result of
Budget measures are shown in italics.
Number of jobseekers commencing training.
Number of migrants commencing and continuing training.
64
Department of Education and Training Budget Statements
Sub-program 2.8.4 Support for the national training system
Objective
This program component is designed to develop an effective and efficient national
training system that meets the needs of Australia’s current and emerging industries.
Delivery
This program component is delivered in collaboration with industry, business and state
and territory governments. Activities include:




developing and reviewing nationally recognised training packages
enhancing the transparency and performance of the system through data
collection and research
promoting the system to potential participants locally and internationally
ensuring the ongoing operation of key functions to support the effective operation
of national training arrangements.
This approach aims to ensure that vocational education and training in Australia
remains contemporary to Australia’s economic and social needs.
Purpose
Department of Education and Training Corporate Plan 2016–2020

Goal 4: Skilled workforce
Measures impacting program 2.8.4:

Industry Workforce Training Program – efficiencies
Performance information 2.8.4 Support for the national training system
Year
High level performance criteria
Expected achievement or target
2016–17
Ongoing operation of programs and
systems, including data collections,
continue to support the national
training system. Further reforms will
be implemented as needed.
The Australian Industry and Skills Committee (AISC)
was supported in transitioning training products to
meet the updated standards for nationally accredited,
industry-focused training.
Training.gov.au was maintained as the authoritative
source for regulatory decisions and other relevant
information on RTOs, training packages and
accredited courses.
My Skills website received 1.6 million visits from
1.2 million unique users in 2016.
Data on fee for service and government supported
training activity was collected and published by the
National Centre for Vocational Education Research
to inform broader market activity and management of
the system by the Australian Government and states
and territories.
2017–18
As per 2017–18
As per 2017–18
2018–19
and beyond
As per 2017–18
As per 2017–18
65
Department of Education and Training Budget Statements
Program expenses 2.8 Building skills and capability
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
Sub-program 2.8.1: Industry
Competitiveness
Annual administered expenses:
Ordinary annual services
(Appropriation Act No. 1 and Bill No. 3)
Industry Skills Fund
25,078
15,316
1,994
National Workforce Development Fund
720
702
Sub-program 2.8.2: Skills Development
Annual administered expenses:
Ordinary annual services
(Appropriation Act No. 1 and Bill No. 3)
Australian Apprenticeship Support Network
169,092
189,473
189,447
189,447
189,447
Australian Apprenticeships Incentives
Program
394,945
392,083
392,083
392,083
392,083
Industry Specialist Mentoring for Australian
Apprentices
19,375
39,038
Job Ready Program - Trades
Recognition Australia
4,634
4,634
4,634
4,634
4,634
South Australian Enterprise Scholarships
4,000
8,000
8,000
4,000
Special Account Expenses:
Growth Fund Skills and Training (a)
9,940
28,150
9,898
11,441
Special Appropriations:
Trade Support Loans Act 2014
Trade Support Loans
64,680
65,327
65,981
66,640
67,306
Sub-program 2.8.3: Access to Training
Annual administered expenses:
Ordinary annual services
(Appropriation Act No. 1 and Bill No. 3)
Adult Migrant English Program
279,730
300,137
303,568
303,780
308,033
National Foundation Skills Strategy
61
50
Skills for Education and Employment
Program
125,413
103,642
93,153
88,047
88,198
Workplace English Language and Literacy
293
Sub-program 2.8.4: Support for the
National Training System
Annual administered expenses:
Ordinary annual services
(Appropriation Act No. 1 and Bill No. 3)
Australian Industry and Skills Committee
1,487
1,489
1,490
1,513
1,534
Industry Workforce Training
53,693
46,105
43,050
42,982
43,700
My Skills Website
542
552
562
570
578
National Centre for Vocational Education
Research
686
686
686
697
707
National Training System COPE
33,325
34,607
35,090
35,617
36,117
Licensing of International Vocational
Education and Training (VET) courses
773
983
1,253
1,193
1,193
1,169,092
1,211,311
1,189,927
1,142,644
1,133,530
Total expenses for program 2.8
(a) This special account is funded by Annual Appropriation Bill (No. 1) and receipts from independent
sources.
66
Department of Education and Training Budget Statements
Section 3: Budgeted financial statements
Section 3 presents budgeted financial statements which provide a comprehensive
snapshot of entity finances for the 2017–18 Budget year, including the impact of
Budget measures and resourcing on financial statements.
3.1
BUDGETED FINANCIAL STATEMENTS
3.1.1 Differences between entity resourcing and financial statements
There are no material variances between the entity resources table and the budgeted
financial statements.
3.2.2 Explanatory notes and analysis of budgeted financial statements
An analysis of the department’s budgeted financial statements, which consists of the
budgeted departmental statements and administered schedules, is provided below.
The 2016–17 estimated actual is used as the comparative year.
Movements from 2016–17 to 2017–18 are predominately related the Shared Service
machinery of government (MoG) impact of the 1 December 2016 and measures. The
balance sheet adjustments due to the MoG are not reflected in the statements.
Budgeted departmental comprehensive income statement
The department’s income statement reflects a deficit across the forward estimates.
These deficits are solely attributable to the depreciation expense for the year. Expenses
for 2017–18 are estimated to be $383.2 million. This reflects a decrease of $2.9 million
from the estimated actual expense for 2016–17.
Budget departmental balance sheet
The budgeted net asset position of $108 million for 2017–18 represents an increase of
$6.7 million from the 2016–17 estimated actual. The accumulated deficit apparent in
the balance sheet represents the accounting treatment applicable to depreciation
expense.
The structure of the balance sheet reflects the nature of the organisation. Key assets are
office fit-out (included in land and buildings), computer and office machines (included
in infrastructure, plant and equipment), and computer software (included in
intangibles). The most significant liability relates to employees and the leave
provisions that are accrued as a result of their employment.
Schedule of budgeted income and expenses administered on behalf of
Government
The schedule reflects the revenues/gains and expenses relating to the programs
administered by the department on behalf of Government.
67
Department of Education and Training Budget Statements
The administered revenue estimates predominately relate to the loan programs
administered by the department, including Higher Education Loan Program (HELP)
and Trade Support Loans. The 2016–17 “other gain” reflects the fair value gain as a
result of reducing the HELP repayment threshold.
Schedule of budgeted assets and liabilities administered on behalf of
Government
Total administered assets are projected to increase from $48 billion to $79.7 billion over
the period 2016–17 to 2020–21, mainly attributable to HELP. The total administered
liabilities predominately relate to the unfunded superannuation provision for
Australian universities.
68
Department of Education and Training Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS TABLES
Table 3.1: Comprehensive income statement (showing net cost of services) for
the period ended 30 June
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Total expenses
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services
Other
Total own-source revenue
Gains
Other
Total gains
Total own-source income
Net (cost of)/contribution by
services
Revenue from Government
Surplus/(deficit) attributable to the
Australian Government
Total comprehensive income/(loss)
Total comprehensive income/(loss)
attributable to the Australian
Government
2016–17
Estimated
actual
$'000
2017–18
Budget
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
212,399
147,049
26,723
386,171
201,270
153,229
28,733
383,232
195,555
139,485
29,551
364,591
191,037
136,357
29,557
356,951
181,701
143,900
32,579
358,180
17,446
1,720
19,166
13,946
1,737
15,683
12,027
1,768
13,795
12,027
1,768
13,795
12,027
1,768
13,795
6,743
6,743
25,909
6,743
6,743
22,426
6,743
6,743
20,538
6,730
6,730
20,525
6,404
6,404
20,199
(360,262)
333,539
(360,806)
332,073
(344,053)
314,502
(336,426)
306,869
(337,981)
305,402
(26,723)
(26,723)
(28,733)
(28,733)
(29,551)
(29,551)
(29,557)
(29,557)
(32,579)
(32,579)
(26,723)
(28,733)
(29,551)
(29,557)
(32,579)
$'000
Note: Impact of net cash appropriation arrangements
2016–17
2017–18
2018–19
2019–20
2020–21
$'000
$'000
$'000
$'000
$'000
Total comprehensive income/(loss)
excluding depreciation/
amortisation expenses previously
funded through revenue
appropriations
less depreciation/amortisation
expenses previously funded through
revenue appropriations (a)
26,723
28,733
29,551
29,557
32,579
Total comprehensive income/(loss)
- as per the statement of
(26,723)
(28,733)
(29,551)
(29,557)
(32,579)
comprehensive income
Prepared on Australian Accounting Standards basis.
(a) From 2010–11, the Government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities
(and select corporate Commonwealth entities) were replaced with a separate capital budget (the
Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information
regarding DCBs, please refer to Table 3.5 Departmental Capital Budget Statement.
69
Department of Education and Training Budget Statements
Table 3.2: Budgeted departmental balance sheet (as at 30 June)
2016–17
Estimated
actual
$'000
2017–18
Budget
2018–19
Forward
estimate
$'000
$'000
ASSETS
Financial assets
Cash and cash equivalents
6,132
6,132
6,132
Trade and other receivables
70,501
70,794
70,745
Other financial assets
1,996
1,996
1,996
Total financial assets
78,629
78,922
78,873
Non-financial assets
Land and buildings
36,729
33,115
29,452
Property, plant and equipment
10,651
11,599
11,591
Intangibles
89,743
99,096
102,224
Other non-financial assets
10,126
10,126
10,126
Total non-financial assets
147,249
153,936
153,393
Total assets
225,878
232,858
232,266
LIABILITIES
Payables
Suppliers
17,282
17,282
17,282
Other payables
32,307
32,307
32,307
Total payables
49,589
49,589
49,589
Provisions
Employee provisions
73,275
73,568
73,519
Other provisions
1,739
1,739
1,739
Total provisions
75,014
75,307
75,258
Total liabilities
124,603
124,896
124,847
Net assets
101,275
107,962
107,419
EQUITY*
Parent entity interest
Contributed equity
195,124
230,544
259,552
Reserves
59
59
59
Retained surplus (accumulated
(93,908) (122,641) (152,192)
deficit)
Total parent entity interest
101,275
107,962
107,419
Total non-controlling interest
Total equity
101,275
107,962
107,419
Prepared on Australian Accounting Standards basis.
*
Equity is the residual interest in assets after the deduction of liabilities.
70
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
6,132
70,654
1,996
78,782
6,132
70,654
1,996
78,782
25,738
10,794
105,796
10,126
152,454
231,236
21,958
10,077
101,560
10,126
143,721
222,503
17,282
32,307
49,589
17,282
32,307
49,589
73,428
1,739
75,167
124,756
106,480
73,428
1,739
75,167
124,756
97,747
288,170
59
312,016
59
(181,749)
(214,328)
106,480
106,480
97,747
97,747
Department of Education and Training Budget Statements
Table 3.3: Departmental statement of changes in equity — summary of
movement (Budget year 2017–18)
Retained
earnings
$'000
Opening balance as at 1 July 2017
Balance carried forward from
(93,908)
previous period
(93,908)
Adjusted opening balance
Comprehensive income
Other comprehensive income
Surplus/(deficit) for the period
(28,733)
(28,733)
Total comprehensive income
of which:
Attributable to the Australian
(28,733)
Government
Transactions with owners
Distributions to owners
Returns on capital:
Other
Contributions by owners
Equity injection - appropriation
Departmental capital budget (DCB)
Sub-total transactions with
owners
Transfers between equity
Transfers between equity
components
Estimated closing balance as at
(122,641)
30 June 2018
Closing balance attributable to
(122,641)
the Australian Government
Prepared on Australian Accounting Standards basis.
71
Asset
revaluation
reserve
$'000
Other
reserves
$'000
Contributed
equity/
capital
$'000
Total
equity
$'000
59
-
195,124
101,275
59
-
195,124
101,275
-
-
-
(28,733)
(28,733)
-
-
-
(28,733)
-
-
-
-
-
-
12,636
22,784
12,636
22,784
-
-
35,420
35,420
-
-
-
-
59
-
230,544
107,962
59
-
230,544
107,962
Department of Education and Training Budget Statements
Table 3.4: Budgeted departmental statement of cash flows (for the period ended
30 June)
2016–17
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
348,284
Sale of goods and rendering of
17,446
services
Other
1,720
Total cash received
367,450
Cash used
Employees
212,697
Suppliers
140,305
Total cash used
353,002
Net cash from/(used by)
14,448
operating activities
INVESTING ACTIVITIES
Cash received
Other
Total cash received
Cash used
Purchase of property, plant and
38,461
equipment and intangibles
Total cash used
38,461
Net cash from/(used by)
(38,461)
investing activities
FINANCING ACTIVITIES
Cash received
Contributed equity
24,013
Total cash received
24,013
Cash used
Other
Total cash used
Net cash from/(used by)
24,013
financing activities
Net increase/(decrease) in cash
held
Cash and cash equivalents at the
6,132
beginning of the reporting period
Effect of exchange rate
movements on cash and
cash equivalents at the
beginning of reporting period
Cash and cash equivalents at
6,132
the end of the reporting period
Prepared on Australian Accounting Standards basis.
72
2017–18
Budget
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
331,780
314,551
306,960
305,402
13,946
12,027
12,027
12,027
1,737
347,463
1,768
328,346
1,768
320,755
1,768
319,197
200,976
146,487
347,463
195,603
132,743
328,346
191,128
129,627
320,755
181,701
137,496
319,197
-
-
-
-
-
-
-
-
35,420
29,008
28,618
23,846
35,420
29,008
28,618
23,846
(35,420)
(29,008)
(28,618)
(23,846)
35,420
35,420
29,008
29,008
28,618
28,618
23,846
23,846
-
-
-
-
35,420
29,008
28,618
23,846
-
-
-
-
6,132
6,132
6,132
6,132
-
-
-
-
6,132
6,132
6,132
6,132
$'000
Department of Education and Training Budget Statements
Table 3.5: Departmental capital budget statement (for the period ended 30 June)
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Equity injections - Bill 2
Total new capital appropriations
Provided for:
Purchase of non-financial assets
Total items
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriations (a)
18,028
5,985
24,013
22,784
12,636
35,420
22,649
6,359
29,008
23,732
4,886
28,618
23,846
23,846
24,013
24,013
35,420
35,420
29,008
29,008
28,618
28,618
23,846
23,846
12,758
12,636
6,359
4,886
-
Funded by capital appropriation 25,703
22,784
22,649
23,732
23,846
DCB (b)
TOTAL
38,461
35,420
29,008
28,618
23,846
RECONCILIATION OF CASH USED
TO ACQUIRE ASSETS TO ASSET
MOVEMENT TABLE
Total purchases
38,461
35,420
29,008
28,618
23,846
Total cash used to acquire assets
38,461
35,420
29,008
28,618
23,846
Prepared on Australian Accounting Standards basis.
(a) Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.
(b) Includes purchases from current and previous years' Departmental Capital Budgets (DCBs).
73
Department of Education and Training Budget Statements
Table 3.6: Statement of asset movements (Budget year 2017–18)
As at 1 July 2017
Gross book value
Accumulated depreciation/
amortisation and impairment
Opening net book balance
Capital asset additions
Estimated expenditure on new
or replacement assets
By purchase - appropriation equity (a)
By purchase - appropriation ordinary
annual services (b)
Total additions
Other movements
Depreciation/amortisation expense
Total other movements
As at 30 June 2018
Gross book value
Accumulated depreciation/
amortisation and impairment
Closing net book balance
Land
Buildings
$'000
$'000
Other property,
plant and
equipment
$'000
Computer
software and
intangibles
$'000
Total
$'000
170
40,634
13,258
147,131
201,193
170
(4,075)
36,559
(2,607)
10,651
(57,388)
89,743
(64,070)
137,123
-
-
-
12,636
12,636
-
500
500
4,181
4,181
18,103
30,739
22,784
35,420
(4,114)
(4,114)
(3,233)
(3,233)
(21,386)
(21,386)
(28,733)
(28,733)
170
41,134
17,439
177,870
236,613
170
(8,189)
32,945
(5,840)
11,599
(78,774)
99,096
(92,803)
143,810
-
Prepared on Australian Accounting Standards basis.
(a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill
(No. 2) 2016–17, including CDABs.
(b) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No. 1)
2016–17 for depreciation/amortisation expenses, DCBs or other operational expenses.
74
Department of Education and Training Budget Statements
Table 3.7: Schedule of budgeted income and expenses administered on behalf of
Government (for the period ended 30 June)
2016–17
Estimated
actual
$'000
EXPENSES
Suppliers
Subsidies
Personal benefits
Grants
Finance costs
Write-down and impairment of assets
Total expenses administered on
behalf of Government
LESS:
OWN-SOURCE INCOME
Own-source revenue
Taxation revenue
Other taxes
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
651,438
398,283
7,301,800
27,107,787
572,764
2,127,598
726,376
406,266
7,622,938
28,448,348
555,497
1,704,766
699,380
398,467
8,852,916
29,381,474
603,457
1,868,395
636,489
404,514
9,669,094
30,695,635
605,512
1,984,682
636,189
393,441
10,110,568
32,158,232
621,482
2,131,379
38,159,670
39,464,191
41,804,089
43,995,926
46,051,291
10,358
10,431
10,525
10,651
10,779
Total taxation revenue
10,358
10,431
10,525
10,651
10,779
Non-taxation revenue
Interest
Loan discount
Other revenue
558,852
778,795
676,250
819,630
837,736
617,715
1,103,705
1,056,971
662,486
1,500,349
1,219,288
701,647
1,704,638
1,568,925
791,653
2,013,897
2,275,081
2,823,162
3,421,284
4,065,216
2,285,512
2,833,687
3,431,935
4,075,995
-
-
-
-
-
-
-
-
2,285,512
2,833,687
3,431,935
4,075,995
Total non-taxation revenue
Total own-source revenue
2,024,255
administered on behalf of
Government
Gains
2,193,200
Other gains
Total gains administered on
2,193,200
behalf of Government
Total own-sourced income
4,217,455
administered on behalf of
Government
Net (cost of)/contribution by
(33,942,215)
services
(33,942,215)
Surplus/(deficit) before income tax
Income tax expense
(33,942,215)
Surplus/(deficit) after income tax
(33,942,215)
Total comprehensive income/(loss)
Prepared on Australian Accounting Standards basis.
75
(37,178,679) (38,970,402) (40,563,991) (41,975,296)
(37,178,679) (38,970,402) (40,563,991) (41,975,296)
(37,178,679) (38,970,402) (40,563,991) (41,975,296)
(37,178,679) (38,970,402) (40,563,991) (41,975,296)
Department of Education and Training Budget Statements
Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of
Government (as at 30 June)
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
ASSETS
Financial assets
823,297
819,830
622,756
608,235
608,987
Trade and other receivables
2,118,861
2,118,936
2,118,937
2,118,937
2,118,937
Other investments
45,068,038 52,196,882 59,745,502 67,935,527 76,970,433
Other financial assets
48,010,196 55,135,648 62,487,195 70,662,699 79,698,357
Total financial assets
Non-financial assets
Other non-financial assets
Total non-financial assets
Total assets administered on
48,010,196 55,135,648 62,487,195 70,662,699 79,698,357
behalf of Government
LIABILITIES
Payables
Suppliers
59,710
59,710
59,710
59,710
59,710
Subsidies
3,861
3,861
3,861
3,861
3,861
Personal benefits
99,894
103,830
155,256
274,701
270,510
Grants
20,679
20,679
20,679
20,679
20,679
Other payables
4,284
4,284
4,284
4,284
4,284
Total payables
188,428
192,364
243,790
363,235
359,044
Interest bearing liabilities
Loans
32,796
32,796
32,796
32,796
32,796
Total interest bearing liabilities
32,796
32,796
32,796
32,796
32,796
Provisions
Personal benefits provision
954,182 1,010,912 1,063,095 1,238,416 1,333,742
Provision for grants
6,844,621 6,626,301 6,365,048 6,075,908 5,743,819
Total provisions
7,798,803 7,637,213 7,428,143 7,314,324 7,077,561
Total liabilities administered on
8,020,027 7,862,373 7,704,729 7,710,355 7,469,401
behalf of Government
Net assets/(liabilities)
39,990,169 47,273,275 54,782,466 62,952,344 72,228,956
Prepared on Australian Accounting Standards basis.
76
Department of Education and Training Budget Statements
Table 3.9: Schedule of budgeted administered cash flows (for the period ended
30 June)
OPERATING ACTIVITIES
Cash received
Interest
Taxes
Other
Total cash received
Cash used
Grants
Subsidies paid
Personal benefits
Suppliers
Total cash used
Net cash from/(used by)
operating activities
INVESTING ACTIVITIES
Cash received
Repayments of advances and loans
Total cash received
Cash used
Advances and loans made
Other
Total cash used
Net cash from/(used by)
investing activities
FINANCING ACTIVITIES
Cash received
Other
Total cash received
Cash used
Other
Total cash used
Net cash from/(used by)
financing activities
Net increase/(decrease) in cash
held
Cash and cash equivalents at
beginning of reporting period
Cash from Official Public Account
for:
- Appropriations
Total cash from Official Public
Account
Cash to Official Public Account for:
- Appropriations
Total cash to Official Public
Account
Effect of exchange rate movements
on cash and cash equivalents at
the beginning of reporting period
Cash and cash equivalents at
end of reporting period
2016–17
Estimated
actual
$'000
2017–18
Budget
659,538
10,358
113,035
782,931
630,637
10,431
77,391
718,459
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
799,540
10,525
69,176
879,241
879,447
10,651
68,537
958,635
2020–21
Forward
estimate
$'000
971,257
10,779
68,827
1,050,863
27,222,177 28,666,668 29,642,727 30,984,775 32,490,321
398,283
406,266
398,467
404,514
393,441
7,283,130
7,553,767
8,541,238
9,345,007 10,004,773
651,438
726,376
699,380
636,489
636,189
35,555,028 37,353,077 39,281,812 41,370,785 43,524,724
(34,772,097)
(36,634,618)
(38,402,571) (40,412,150) (42,473,861)
1,559,311
1,559,311
1,508,585
1,508,585
2,099,131
2,099,131
8,877,865
74
8,877,939
9,335,765 10,171,713 10,668,488 11,421,561
74
74
74
74
9,335,839 10,171,787 10,668,562 11,421,635
(7,318,628)
(7,827,254)
2,354,682
2,354,682
2,651,768
2,651,768
(8,072,656) (8,313,880) (8,769,867)
74
74
74
74
74
74
74
74
74
74
-
-
-
-
-
74
74
74
74
74
(42,090,651)
(44,461,798)
-
14,259
44,396,468
46,668,114
49,445,677 52,035,684 54,942,812
44,396,468
46,668,114
49,445,677 52,035,684 54,942,812
(46,475,153) (48,725,956) (51,243,654)
13,610
17,287
24,349
(2,291,558)
(2,206,965)
(2,966,847) (3,302,666) (3,691,852)
(2,291,558)
(2,206,965)
(2,966,847) (3,302,666) (3,691,852)
-
-
-
-
-
14,259
13,610
17,287
24,349
31,655
Prepared on Australian Accounting Standards basis.
77
Department of Education and Training Budget Statements
Table 3.10: Administered capital budget statement (for the period ended 30 June)
The department has no administered capital budget therefore Table 3.10 is not
presented.
Table 3.11: Statement of administered asset movements (Budget year 2017–18)
The department has no administered asset movements therefore Table 3.11 is not
presented.
78
AUSTRALIAN CURRICULUM,
ASSESSMENT AND REPORTING
AUTHORITY
ENTITY RESOURCES AND PLANNED
PERFORMANCE
79
AUSTRALIAN CURRICULUM, ASSESSMENT AND
REPORTING AUTHORITY
SECTION 1: OVERVIEW AND RESOURCES ................................................................... 82
1.1
Strategic direction statement .......................................................................... 82
1.2
Entity resource statement ............................................................................... 84
SECTION 2: OUTCOMES AND PLANNED PERFORMANCE........................................ 85
2.1
Budgeted expenses and performance for Outcome 1 .................................... 86
SECTION 3: BUDGETED FINANCIAL STATEMENTS ................................................... 94
3.1
Budgeted financial statements........................................................................ 94
3.2
Budgeted financial statements tables ............................................................. 95
81
AUSTRALIAN CURRICULUM, ASSESSMENT AND
REPORTING AUTHORITY
Section 1: Overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
The Australian Curriculum, Assessment and Reporting Authority (ACARA) was
established under the Australian Curriculum, Assessment and Reporting Authority Act
2008 of the Parliament of the Commonwealth of Australia. The legislation was
assented to on 8 December 2008.
ACARA’s mission is to improve the learning of all young Australians through
world-class school curriculum, assessment and reporting.
ACARA’s strategic directions are set through its Charter, issued by the Council of
Australian Government (COAG) Education Council (Council). The Charter reflects
ACARA’s role as an independent statutory authority and provides guidance about the
nature of the activities ACARA is expected to undertake in fulfilling its functions and
executing the policy directions set by the Council.
ACARA’s budget is agreed to by Council and provided in accordance with the
Council’s agreed funding formula. ACARA’s high-level 2016–17 to 2019–20 work plan
and budget was endorsed by the Council in 2015–16. ACARA’s high-level 2020–21
work plan and budget will be submitted to the Council for consideration at the end of
2016–17 as part of its 2017–18 to 2020–21 rolling quadrennial plan.
A priority for ACARA in 2017–18 is ensuring the successful transition to online
assessment in collaboration with Education Services Australia and all Australian
governments, with the goal to move the National Assessment Program – Literacy and
Numeracy (NAPLAN) online by 2019. During this period, ACARA will also continue
to assemble the necessary data and information needed to provide for future evidence
based policy and curriculum development.
ACARA’s strategic directions, endorsed by the Council in November 2016, are:
National Curriculum

provide a world-class curriculum from Foundation to Year 12 in specified
learning areas agreed to by Council

assemble the evidence base required to review, develop and refine curriculum
82
ACARA Budget Statements
National assessment

provide a quality, comprehensive and cohesive suite of assessments (including
NAPLAN and NAP Sample)
National data and reporting

provide and apply a comprehensive and reliable national measurement
framework

facilitate the use and dissemination of data for research and policy development
in accordance with agreed protocols

present detailed, accessible, timely and meaningful school education performance
information
National collaboration and leadership

provide effective national leadership in curriculum development, educational
assessment and national reporting

closely collaborate with jurisdictions, the non-government education sector and
relevant stakeholders in pursuing the national education agenda.
ACARA works collaboratively with a wide range of stakeholders including teachers,
principals, government, state and territory education authorities, professional
education associations, business and industry, community groups and the broader
public in undertaking its work.
The management of risk is fundamental in supporting ACARA to achieve ACARA’s
strategic directions in a complex stakeholder environment. ACARA’s Board, Audit and
Risk Committee and executive, as well as staff, are actively involved in risk
management for ACARA. This work is supported by an internal audit program that
tests ACARA’s compliance framework and controls.
83
ACARA Budget Statements
1.2
ENTITY RESOURCE STATEMENT
Table 1.1 shows the total funding from all sources available to the entity for its
operations and to deliver programs and services on behalf of the Government.
The table summarises how resources will be applied by outcome (government strategic
policy objectives) and by administered (on behalf of the Government or the public) and
departmental (for the entity’s operations) classification.
For more detailed information on special accounts and special appropriations, please
refer to Budget Paper No. 4 – Agency Resourcing.
Information in this table is presented on a resourcing (that is, appropriations/cash
available) basis, while the ‘Budgeted expenses by Outcome’ table in Section 2 and the
financial statements in Section 3 are presented on an accrual basis.
Table 1.1: ACARA resource statement — Budget estimates for 2017–18 as at
Budget May 2017
2016–17
estimated
actual
$'000
2017–18
estimate
$'000
Opening balance/cash reserves at 1 July
6,039
5,453
Funds from Government
Amounts received from related entities
Amounts from portfolio department (a)
Total amounts received from related entities
Total funds from Government
13,797
13,797
13,797
15,291
15,291
15,291
Funds from other sources
Interest
Other
Total funds from other sources
Total net resourcing for Entity
60
14,404
14,464
34,300
60
13,212
13,272
34,016
2016–17
2017–18
Average staffing level (number)
84
93
Prepared on a resourcing (i.e. appropriations available) basis.
Note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement.
84
ACARA Budget Statements
Section 2: Outcomes and planned performance
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programs are the
primary vehicle by which government entities achieve the intended results of their
outcome statements. Entities are required to identify the programs which contribute to
government outcomes over the Budget and forward years.
Each outcome is described below together with its related programs. The following
provides detailed information on expenses for each outcome and program, further
broken down by funding source.
Note:
Performance reporting requirements in the Portfolio Budget Statements are part of the
enhanced Commonwealth performance framework established by the Public
Governance, Performance and Accountability Act 2013. It is anticipated that the
performance criteria described in Portfolio Budget Statements will be read with
broader information provided in an entity’s corporate plans and annual performance
statements—included in Annual Reports—to provide an entity’s complete
performance story.
The most recent corporate plan for ACARA can be found at: www.acara.edu.au
The most recent annual performance statement can be found in the Annual Report at:
www.acara.edu.au
85
ACARA Budget Statements
2.1
BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1
Outcome 1: Improved quality and consistency of school education in Australia
through a national curriculum, national assessment, data collection, and
performance reporting system.
Budgeted expenses for Outcome 1
This table shows how much ACARA intends to spend (on an accrual basis) on
achieving the outcome, broken down by program, as well as by administered and
departmental funding sources.
Table 2.1.1: Budgeted expenses for Outcome 1
Outcome 1: Improved quality and consistency of school education in Australia through a national curriculum,
national assessment, data collection and performance reporting system.
2016–17
Estimated
actual
$'000
Program 1.1: National Curriculum
Revenue from Government
Payment from related entities
2,670
Revenues from other independent sources
2,072
Total expenses for Program 1.1
4,742
Program 1.2: National Assessment
Revenue from Government
Payment from related entities
9,225
Revenues from other independent sources
10,284
Total expenses for Program 1.2
19,509
Program 1.3: National Data Collection and Reporting
Revenue from Government
Payment from related entities
1,429
Revenues from other independent sources
1,584
Total expenses for Program 1.3
3,013
Program 1.4: National Collaboration and Leadership
Revenue from Government
Payment from related entities
473
Revenues from other independent sources
524
Total expenses for Program 1.4
997
Outcome 1 totals by resource type
Revenue from Government
Payment from related entities
13,797
Revenues from other independent sources
14,464
Total expenses for Outcome 1
28,261
Average staffing level (number)
2016–17
84
86
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
4,565
2,113
6,678
4,619
2,413
7,032
4,798
2,488
7,286
-
8,452
8,812
17,264
7,816
7,882
15,698
7,836
7,902
15,738
-
1,759
1,815
3,574
2,149
2,151
4,300
2,090
2,092
4,182
-
515
532
1,047
632
632
1,264
652
652
1,304
-
15,291
13,272
28,563
15,216
13,078
28,294
15,376
13,134
28,510
-
2017–18
93
ACARA Budget Statements
Performance criteria for Outcome 1
This section details the performance criteria for each program associated with
Outcome 1. It summarises how each program is delivered and where 2017–18 Budget
measures have created new programs or materially changed existing programs.
Outcome 1: Improved quality and consistency of school education in Australia
through a national curriculum, national assessment, data collection, and
performance reporting system.
Program 1.1: National Curriculum
Objective
The program aims to improve the quality, equity and transparency of Australia’s
education system. A national curriculum ensures that every child in Australia,
regardless of where they live or the school they attend, has access to a world-class
curriculum.
Delivery
Program 1.1 delivery activities are:





Purpose
delivering the Foundation - Year 10 and Senior Secondary Australian Curriculum
through the Australian Curriculum website
strengthening assessment of student learning of the Australian Curriculum through
provision of student work samples and National Assessment Program
development
monitoring the effectiveness of the Australian Curriculum by collecting, analysing
and reporting annually on feedback
reviewing and reporting on recent developments in research and international
curriculum practice to inform national policy and practice and to further improve
the Australian Curriculum
providing authoritative Australian Curriculum advice to stakeholders and facilitating
information-sharing and collaboration in support of the Australian Curriculum.
Program 1.1 contributes to the following purposes of ACARA:


provide a world-class curriculum from Foundation to Year 12 in specified learning
areas agreed to by Council
assemble the evidence base required to review, develop and refine curriculum.
Performance information 1.1 National Curriculum
Year
Performance criteria
Expected achievement or target
2016–17
Monitoring activities around the national
curriculum undertaken.
Monitoring Report published in January
2017:

Material to improve accessibility of the
Australian Curriculum for students with disability
(in addition to those relating to the Curriculum
Review) developed and approved.
Materials to improve the accessibility of
the Australian Curriculum for students
with disability published by end of July
2017:

2017–18
2016 Monitoring Report approved
by the ACARA Board at the end of
2016 and published in February
2017.
Materials published in December
2016.
Monitoring activities around the national
curriculum undertaken.
2017 Monitoring Report published by
end of January 2018.
Level of satisfaction with the Australian
Curriculum website.
Strong satisfaction with the ACARA
website recorded by end of June 2018.
87
ACARA Budget Statements
Year
Performance criteria
Expected achievement or target
2018–19
and beyond
Monitoring activities around the national
curriculum undertaken including measuring
satisfaction with the Australian Curriculum
website.
A Monitoring Report published by end of
January in 2019, 2020.
Portfolios of work samples for all published
curriculum available.
Portfolios of work samples for all
published curriculum finalised and
published by end of June 2019.
Comparisons undertaken between the
Australian Curriculum and top performing
school systems-nations.
Eight comparisons made and reported
on by November 2019.
88
ACARA Budget Statements
Program 1.2: National Assessment
Objective
The program aims to provide school education leaders, teachers and parents with the
means to periodically assess students against previous performance, national
benchmarks and their peers using an objective measure.
Delivery
Program 1.2 delivery activities are:




Purpose
researching, developing and supporting activities required for online assessment
managing the planning and development and oversee the delivery and reporting
for the National Assessment Program Literacy and Numeracy (NAPLAN),
managing the transition from pen and paper form to online delivery
managing the development and overseeing the delivery of assessments and
reporting for the National Assessment Program (NAP) sample assessments
responding to agreed national assessment policy and providing evidence-based
advice to the Australian Education Senior Officials Committee (AESOC) and
Education Council.
Program 1.2 contributes to the following purpose of ACARA:

provide a quality, comprehensive and cohesive suite of national assessments.
Performance information 1.2 National Assessment
Year
Performance criteria
Expected achievement or target
2016–17
National Assessment Program (NAP) –
NAPLAN and NAP sample
assessments – delivered.
2016 NAP Civics and Citizenship successfully
delivered online in Oct/Nov 2016.
2016 NAPLAN National Report published in
December 2016, following Education Council
endorsement.
2017 NAPLAN delivered in May 2017.
NAPLAN proficiency standards and
reports (student, school, national)
developed.
Development of proficiency standards will
continue into 2017–18 as agreed by Education
Council.35
Production of preliminary student and school
summary reports (without new proficiency
standards) expected to be finalised and delivered
for NAPLAN 2017.
2017–18
2018–19
and beyond
35
National Assessment Program (NAP) –
NAPLAN and NAP sample
assessments – delivered.
NAP successfully delivered and reported on
(including delivery of NAPLAN online in 2018 to
up to 50% of schools).
ACARA research and development
activities relating to online assessment
completed.
All agreed research and development activities
completed and findings communicated as
required.
National Assessment Program (NAP) –
NAPLAN and NAP sample
assessments – delivered.
NAP successfully delivered and reported on
(including delivery of NAPLAN online in 2019,
2020, 2021).
Evaluation of NAPLAN online
processes undertaken and potential
enhancements identified.
NAPLAN online processes reviewed (including
the potential addition of gain scores to individual
student reports (ISRs)).
Level of stakeholder satisfaction with
online assessment.
Strong level of satisfaction with online
assessment.
At its meeting of 16 December 2016, the Education Council noted ACARA’s advice on
proficiency standards and agreed that further discussion around proficiency standards will
occur in 2017. As agreed by Council in December 2016, no change to the reporting of
NAPLAN results will occur in 2017.
89
ACARA Budget Statements
Program 1.3: National Data and Reporting
Objective
The program aims to provide public reporting to promote accountability and
engagement in school education.
Provision of quality information on schooling is important for schools and their
students, for parents and their families and for the community and governments.
Delivery
Program 1.3 delivery activities are:





Purpose
monitoring and where necessary reviewing the existing national key performance
measures for schools
producing a comprehensive and authoritative national report on schooling in
Australia related to national key performance measures
managing the collection and quality assurance of data and providing national
school information through the My School website and national reports
managing the sharing and dissemination of data with government and
non-government school authorities and with other applicants in accordance with
agreed protocols
responding to agreed national data collection and reporting policy and providing
evidence-based advice to AESOC and Education Council.
Program 1.3 contributes to the following purpose of ACARA:



provide and apply a comprehensive and reliable national measurement framework
facilitate the use and dissemination of data for research and policy development in
accordance with agreed protocols
present detailed, accessible, timely and meaningful school education performance
information.
Performance information 1.3 National Data and Reporting
Year
Performance criteria
Expected achievement or target
2016–17
The National Report on Schooling in Australia is
published before the end of the subsequent
calendar year.
For the first time a National Report on
Schooling in Australia Data Portal
providing key time series data for
analysis was published in the fourth
quarter of 2016 in conjunction with the
2014 National Report on Schooling in
Australia.
The 2015 National Report is expected to
be published in the first quarter of
2017–18.36
2017–18
36
Australian Schools List finalised and an agreed
process for regular updating in place.
Australian Schools List was integrated
into the My School data collection at the
end of 2016 and is regularly refreshed.
The National Report on Schooling in Australia is
published before the end of the subsequent
calendar year.
2016 National Report on Schooling in
Australia published by end of 2017–18.
National Report on Schooling for 2015 delayed due to the consultations required to develop
and finalise the associated data portal.
90
ACARA Budget Statements
Year
2018–19
and beyond
37
Performance criteria
Expected achievement or target
Scope and begin review of the Measurement
Framework for Schooling in Australia, in
consultation with stakeholders and advisory
groups undertaken.37
Suggested modifications to the
Measurement Framework for Schooling
in Australia drafted in preparation for
endorsement by the Education Council
in 2018–19.
The National Report on Schooling in Australia is
published before the end of the subsequent
calendar year.
2017, 2018, 2019 National Reports on
Schooling in Australia published by end
of 2018, 2019, 2020 respectively.
Level of stakeholder satisfaction with the My
School website.
Strong level of satisfaction with the My
School website recorded.
Enhancements to My School considered and
agreed to by the Education Council in
September 2015 progressed.
All enhancements to My School website
consulted on with key stakeholders and
progressed and/or implemented as
agreed.
Performance criterion and target modified from 2016–17 PBS (page 102) to reflect the start of
the review of the Measurement Framework for Schooling in Australia (as opposed to
completion) with the related target indicating that endorsement by Education Council will
not be sought until the 2018–19 reporting period.
91
ACARA Budget Statements
Program 1.4: National Collaboration and Leadership
Objective
The program aims to ensure ACARA works in a transparent and collaborative manner
with Commonwealth/state/territory departments of education and government and nongovernment school authorities.
ACARA will share its proposals and work with a range of advisory groups to enable all
stakeholders to provide input.
Delivery
Program 1.4 delivery activities are:



Purpose
communicating information about ACARA’s work and achievements to partners,
stakeholders and the broader community
providing national leadership in curriculum, assessment, data collection and
reporting directly and in collaboration with the Commonwealth, states, territories,
non-government sector, AITSL, ESA and other stakeholder groups and ensure
liaison with key stakeholders across all matters relating to curriculum, assessment
and reporting
collaborating with international education bodies to ensure ACARA’s work and
advice to ministers is informed by leading research and better practice and provide
support services internationally where this aligns with ACARA's core areas of
work.
Program 1.4 contributes to the following purpose of ACARA:


provide effective national leadership in curriculum development, educational
assessment and national reporting
closely collaborate with jurisdictions, the non-government education sector and
relevant stakeholders in pursuing the national education agenda.
Performance information 1.4 National Collaboration and Leadership
Year
Performance criteria
Expected achievement or target
2016–17
An advisory structure that is fit-for-purpose is in
place.
Advisory structure published for
2016–17 on ACARA’s website with
feedback, measured via a survey of
advisory groups in the first quarter of
2017, which shows the structure meets
the purpose.
A transparent and timely reporting process and
structure is maintained.
Progress reports have been submitted to
the Education Council and/or AESOC
twice in 2016–17 and at each meeting of
the ACARA Board and all advice
provided on time and of high quality.
Collaboration with partners (government and
non-government school sectors), national
stakeholders and international education bodies
clearly maintained.
It is expected ACARA will maintain all
scheduled meetings of ACARA’s key
advisory groups and ensure ACARA’s
attendance at key working groups and
peak body opportunities. It is expected
that communication with international
bodies (e.g. OECD) will continue through
2016–17.
An advisory structure that is fit-for-purpose is in
place.
Advisory structure published.
A transparent and timely reporting process and
structure is maintained.
Progress reports against the annual
work plan submitted AESOC twice and
at each meeting of the ACARA Board
and all advice provided on time and of
high quality.
2017–18
92
ACARA Budget Statements
Year
2018–19
and beyond
Performance criteria
Expected achievement or target
Collaboration with partners (government and
non-government school sectors), national
stakeholders and international education bodies
clearly maintained.
Evidence of collaboration through
scheduled meetings of ACARA’s key
advisory groups, ACARA’s attendance at
key working groups and peak body
opportunities and evidence of
communication with international
education bodies.
As per 2017–18
As per 2017–18
93
ACARA Budget Statements
Section 3: Budgeted financial statements
Section 3 presents budgeted financial statements which provide a comprehensive
snapshot of entity finances for the 2017–18 Budget year, including the impact of
Budget measures and resourcing on financial statements.
3.1
BUDGETED FINANCIAL STATEMENTS
3.1.1 Differences between entity resourcing and financial statements
There are no material variances between the entity resources table and the budgeted
financial statements.
3.1.2 Explanatory notes and analysis of budgeted financial statements
ACARA’s work is undertaken through agreement by the COAG Education Council
(the Council) and set through its Charter, its rolling quadrennial plan and any other
written instructions from the Council. ACARA’s budget is agreed to by Council and
provided in accordance with the Council’s agreed funding formula. ACARA’s
high-level 2016–17 to 2019–20 work plan and budget was endorsed by the Council in
2015–16. ACARA’s high-level 2020–21 work plan and budget will be submitted to the
Council for consideration at the end of 2016–17 as part of its 2017–18 to 2020–21 rolling
quadrennial plan.
94
ACARA Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS TABLES
Table 3.1: Comprehensive income statement (showing net cost of services) for
the period ended 30 June
2016–17
Estimated
actual
$'000
EXPENSES
13,282
Employee benefits
14,279
Suppliers
700
Depreciation and amortisation
28,261
Total expenses
LESS:
OWN-SOURCE INCOME
Own-source revenue
60
Interest
28,201
Other
28,261
Total own-source revenue
28,261
Total own-source income
Net (cost of)/contribution by
services
Surplus/(deficit) attributable to the
Australian Government
OTHER COMPREHENSIVE INCOME
Total other comprehensive income
Total comprehensive income/(loss)
Total comprehensive income/(loss)
attributable to the Australian
Government
Prepared on Australian Accounting Standards basis.
95
2020–21
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
14,274
13,589
700
28,563
14,478
13,116
700
28,294
14,288
13,522
700
28,510
-
60
28,503
28,563
28,563
60
28,234
28,294
28,294
60
28,450
28,510
28,510
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2017–18
Budget
$'000
ACARA Budget Statements
Table 3.2: Budgeted departmental balance sheet (as at 30 June)
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
ASSETS
Financial assets
Cash and cash equivalents
6,039
5,453
Trade and other receivables
5,283
5,353
Total financial assets
11,322
10,806
Non-financial assets
Property, plant and equipment
1,922
1,507
Other non-financial assets
85
85
Total non-financial assets
2,007
1,592
Assets held for sale
Total assets
13,329
12,398
LIABILITIES
Payables
Suppliers
1,850
1,700
Other payables (grants in advance)
8,584
7,803
Total payables
10,434
9,503
Provisions
Employee provisions
1,600
1,600
Other provisions
380
380
Total provisions
1,980
1,980
Total liabilities
12,414
11,483
Net assets
915
915
EQUITY*
Parent entity interest
Reserves
77
Retained surplus (accumulated
838
915
deficit)
Total parent entity interest
915
915
Total equity
915
915
Prepared on Australian Accounting Standards basis.
*
Equity is the residual interest in assets after deduction of liabilities.
96
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
5,878
5,373
11,251
6,155
5,465
11,620
-
1,092
85
1,177
677
85
762
-
12,428
12,382
2020–21
Forward
estimate
$'000
-
1,700
7,833
9,533
1,500
7,987
9,487
-
1,600
380
1,980
11,513
915
1,600
380
1,980
11,467
915
-
-
-
-
915
915
-
915
915
915
915
-
ACARA Budget Statements
Table 3.3: Departmental statement of changes in equity — summary of
movement (Budget year 2017–18)
Retained
earnings
$'000
Opening balance as at 1 July 2017
Balance carried forward from
838
previous period
Adjustment for changes in
77
accounting policies
Adjusted opening balance
915
Comprehensive income
Other comprehensive income
Surplus/(deficit) for the period
Total comprehensive income
Estimated closing balance as at
915
30 June 2018
Less: non-controlling interests
Closing balance attributable to
915
the Australian Government
Prepared on Australian Accounting Standards basis.
97
Asset
revaluation
reserve
$'000
Other
reserves
$'000
Contributed
equity/
capital
$'000
Total
equity
$'000
-
-
-
838
-
-
-
77
-
-
-
915
-
-
-
-
-
-
-
915
-
-
-
-
915
ACARA Budget Statements
Table 3.4: Budgeted departmental statement of cash flows (for the period ended
30 June)
2016–17
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Grants received
28,897
Interest
60
Net GST received
140
Other
255
Total cash received
29,352
Cash used
Employees
13,147
Suppliers
14,485
Total cash used
27,632
Net cash from/(used by)
1,720
operating activities
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and
1,235
equipment and intangibles
Total cash used
1,235
Net cash from/(used by)
(1,235)
investing activities
Net increase/(decrease) in cash
485
held
Cash and cash equivalents at the
5,554
beginning of the reporting period
Cash and cash equivalents at
6,039
the end of the reporting period
Prepared on Australian Accounting Standards basis.
2017–18
Budget
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
27,702
60
145
27,907
28,244
60
150
28,454
28,450
60
145
28,655
-
14,500
13,708
28,208
14,706
13,038
27,744
14,513
13,580
28,093
-
(301)
710
562
-
285
285
285
-
285
285
285
-
(285)
(285)
(285)
-
(586)
425
277
-
6,039
5,453
5,878
-
5,453
5,878
6,155
-
$'000
2020–21
Forward
estimate
$'000
Table 3.5: Departmental capital budget statement (for the period ended 30 June)
ACARA does not have a departmental capital budget therefore Table 3.5 is not
presented.
98
ACARA Budget Statements
Table 3.6: Statement of asset movements (Budget year 2017–18)
Other property,
plant and
equipment
$'000
As at 1 July 2017
Gross book value
Accumulated depreciation/
amortisation and impairment
Opening net book balance
Capital asset additions
Estimated expenditure on new
or replacement assets
By purchase - other
Total additions
Other movements
Depreciation/amortisation expense
Total other movements
As at 30 June 2018
Gross book value
Accumulated depreciation/
amortisation and impairment
Closing net book balance
Computer
software and
intangibles
$'000
Other
Total
$'000
$'000
2,640
-
-
2,640
(718)
1,922
-
-
(718)
1,922
285
285
-
-
285
285
(700)
(700)
-
-
(700)
(700)
2,925
-
-
2,925
(1,418)
1,507
-
-
(1,418)
1,507
Prepared on Australian Accounting Standards basis.
Table 3.7: Schedule of budgeted income and expenses administered on behalf of
Government (for the period ended 30 June)
ACARA has no income and expenses administered on behalf of Government therefore
Table 3.7 is not presented.
Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of
Government (as at 30 June)
ACARA has no assets and liabilities administered on behalf of Government therefore
Table 3.8 is not presented.
Table 3.9: Schedule of budgeted administered cash flows (for the period ended
30 June)
ACARA has no administered cash flows therefore Table 3.9 is not presented.
Table 3.10: Administered capital budget statement (for the period ended 30 June)
ACARA has no administered capital budget therefore Table 3.10 is not presented.
Table 3.11: Statement of administered asset movements (Budget year 2017–18)
ACARA has no administered asset movements therefore Table 3.11 is not presented.
99
AUSTRALIAN INSTITUTE OF
ABORIGINAL AND TORRES STRAIT
ISLANDER STUDIES
ENTITY RESOURCES AND PLANNED
PERFORMANCE
101
AUSTRALIAN INSTITUTE OF ABORIGINAL AND TORRES
STRAIT ISLANDER STUDIES
SECTION 1: OVERVIEW AND RESOURCES ................................................................. 104
1.1
Strategic direction statement ........................................................................ 104
1.2
Entity resource statement ............................................................................. 107
SECTION 2: OUTCOMES AND PLANNED PERFORMANCE...................................... 108
2.1
Budgeted expenses and performance for Outcome 1 .................................. 109
SECTION 3: BUDGETED FINANCIAL STATEMENTS ................................................. 116
3.1
Budgeted financial statements...................................................................... 116
3.2
Budgeted financial statements tables ........................................................... 118
103
AUSTRALIAN INSTITUTE OF ABORIGINAL AND TORRES
STRAIT ISLANDER STUDIES
Section 1: Overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
The Australian Institute of Aboriginal and Torres Strait Islander Studies (AIATSIS) is
an independent statutory authority created by the Australian Institute of Aboriginal and
Torres Strait Islander Studies Act 1989. The purpose of AIATSIS, as a national collecting
institution and publicly funded research agency which creates unique research
infrastructure for Australia, is to build pathways for the knowledge of Aboriginal and
Torres Strait Islander people to grow and be shared. This purpose contributes to a
broader ideal for Indigenous peoples’ knowledge and culture to be recognised,
respected and valued.
AIATSIS’ Corporate Plan 2016–2020 sets out the strategic goals that will drive
AIATSIS’ activities, including:

ensuring our collections are safe, accessible, valued and growing

providing leadership in Indigenous research, and ethical engagement in research,
collecting and publishing

strengthening understanding of Aboriginal and Torres Strait Islander culture and
heritage

promoting and sharing Aboriginal and Torres Strait Islander culture and heritage
by
- connecting with community
- connecting with the nation

providing advice to the Commonwealth on the situation and status of Aboriginal
and Torres Strait Islander culture and heritage

ensuring strong governance and resilient organisation through leadership,
innovation and partnership.
Priorities for AIATSIS in the coming year include:
Our collections: Containing over one million items including moving images, photos,
art, artefacts and manuscripts, the national Indigenous collection has been
independently assessed as the most significant collection of Aboriginal and Torres
Strait Islander materials in the world. The majority of the collection consists of unique
materials—stories, language, songs ceremony and traditions—that would be lost
without the nation’s ongoing investment in collection and preservation through
104
AIATSIS Budget Statements
AIATSIS. It is invaluable not only to Indigenous peoples and communities, but to the
nation. The Government remains committed to the investment to strengthen AIATSIS’
capacity to preserve (including digitise), manage and share this collection.
Strategic research: AIATSIS is developing a long term strategic research agenda in
Indigenous research and will continue to seek partnerships and collaborations which
not only open external funding opportunities but also align with the leadership role
that is clearly articulated in its legislation. The research agenda will continue to
develop through 2017–2018 and will be focused around engagement of Indigenous
peoples in research, including cultural competency, ethics and impact, and contribute
to research policy and strategy nationally. AIATSIS will continue to provide sectorial
leadership and engagement in areas of expertise: governance, native title, and
livelihoods, languages, family history and collections based research.
Strengthen understanding of culture and heritage: AIATSIS will maintain and
enhance its efforts to build partnerships and collaborations across the full spectrum of
government, industry, academic and community stakeholders. A particular focus will
be on collaborations that contribute to increased participation and success of
Indigenous people at university and in building a growing and vibrant Indigenous
academic and public sector workforce. This includes building on the whole-ofgovernment benefits generated by the AIATSIS CORE Cultural Learning online
foundation program, supporting implementation by government agencies, as well
extending reach to the education and other sectors.
Promoting and sharing culture and heritage: By reinvigorating our public programs
and activities, creating maximum value in our publications of material related to
Indigenous Australia, and continuing to refine our online presence, AIATSIS will
continue to meet the needs of a wide range of existing clients. AIATSIS will also
engage and attract new audiences, providing experiences which share stories and
knowledge of Aboriginal Torres Strait Islander culture and heritage. AIATSIS’ online
presence will continue to build its authoritative gateway to Indigenous Australia as
well as provide access to the national Indigenous collections, research outputs and
corporate information.
Providing advice: AIATSIS occupies a unique place at the nexus between the academic
and cultural sectors, Government and Indigenous communities. AIATSIS will use its
position to support the actions of others to preserve, protect and promote Australia’s
Indigenous heritage, through language programs, curriculum development and
information management platforms as well as advice on research and archival practice.
AIATSIS will implement strategies that augment AIATSIS’ capacity to provide sound
advice to Government and others in relation to the situation and status of Aboriginal
and Torres Strait Islander culture and heritage, and to enhance its leadership role in
Indigenous engagement, research and collections.
Governance and resilience: To support its work, AIATSIS will continue to pursue best
practice governance, particularly in the areas of financial performance, resource
105
AIATSIS Budget Statements
management and staff development. This will be underpinned by the internal audit
program and the AIATSIS Council Audit and Assurance sub-committee.
AIATSIS will build on its reputation and standing within Indigenous Communities
through on-going respectful engagement that clearly demonstrates the value that
AIATSIS places on Indigenous communities, their wellbeing and resilience.
AIATSIS will maximise its efforts through professional partnerships, collaborations
and joint projects, with a strong focus on Indigenous community involvement.
AIATSIS’ key challenges in 2017–18 include:
Reform and continuous improvement: The changes to the AIATSIS Act, along with
significant additional ongoing resourcing, represented an unprecedented opportunity
for AIATSIS. The amendments streamlined the number of legislated functions from
eight to five, allowing AIATSIS to better target its resources. AIATSIS’ planning
processes will continue to initiate substantial change as it continues to reposition
capability to respond to these reforms.
Sustainability: AIATSIS is developing a long term sustainability plan to address
current and future capital infrastructure, technology and workforce challenges and
operational needs. This plan also explores options to build resilience and
independence through maximising revenue generation and partnerships with other
cultural institutions.
Capital infrastructure sustainability: AIATSIS vaults, which keep the invaluable
collection preserved, are rapidly approaching the end of their useful life. Planning to
support the rebuild and refurbish of the vaults, as well as the refurbishment of staff
accommodation and the development of exhibition and public spaces, continues in the
context of AIATSIS’ long term sustainability plan.
Technological sustainability: AIATSIS operates in a rapidly changing world of
knowledge management and to pursue its functions effectively must remain at the
forefront of technological change. Ongoing management of the currency of technology
remains a key challenge.
Workforce sustainability: As a result of the changes to AIATSIS’ functions under the
Act, work continues to rebalance the current workforce to ensure sustainable core
capability with appropriate flexible and dynamic surge capacity.
106
AIATSIS Budget Statements
1.2
ENTITY RESOURCE STATEMENT
Table 1.1 shows the total funding from all sources available to the entity for its
operations and to deliver programs and services on behalf of the Government.
The table summarises how resources will be applied by outcome (government strategic
policy objectives) and by administered (on behalf of the Government or the public) and
departmental (for the entity’s operations) classification.
For more detailed information on special accounts and special appropriations, please
refer to Budget Paper No. 4 – Agency Resourcing.
Information in this table is presented on a resourcing (that is, appropriations/cash
available) basis, while the ‘Budgeted expenses by Outcome’ table in Section 2 and the
financial statements in Section 3 are presented on an accrual basis.
Table 1.1: AIATSIS resource statement — Budget estimates for 2017–18 as at
Budget May 2017
Opening balance/cash reserves at 1 July
Funds from Government
Annual appropriations - ordinary annual services (a)
Outcome 1
Annual appropriations - other services (b)
Equity injection
2016–17
estimated
actual
$'000
13,825
2017–18
estimate
$'000
19,817
19,493
12,943
74
74
Total annual appropriations
19,891
19,567
Total funds from Government
19,891
19,567
Funds from other sources
Interest
Sale of goods and services
Other
Total funds from other sources
Total net resourcing for AIATSIS
450
875
4,713
6,038
39,754
450
797
4,713
5,960
38,470
2016–17
2017–18
Average staffing level (number)
152
121
Prepared on a resourcing (i.e. appropriations available) basis.
Note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement.
(a) Appropriation Bill (No. 1) 2017–18.
(b) Appropriation Bill (No. 2) 2017–18.
107
AIATSIS Budget Statements
Section 2: Outcomes and planned performance
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programs are the
primary vehicle by which government entities achieve the intended results of their
outcome statements. Entities are required to identify the programs which contribute to
government outcomes over the Budget and forward years.
Each outcome is described below together with its related programs. The following
provides detailed information on expenses for each outcome and program, further
broken down by funding source.
Note:
Performance reporting requirements in the Portfolio Budget Statements are part of the
enhanced Commonwealth performance framework established by the Public
Governance, Performance and Accountability Act 2013. It is anticipated that the
performance criteria described in Portfolio Budget Statements will be read with
broader information provided in an entity’s corporate plans and annual performance
statements—included in Annual Reports—to provide an entity’s complete
performance story.
The most recent corporate plan for AIATSIS can be found at: www.aiatsis.gov.au
The most recent annual performance statement can be found in the Annual Report at:
www.aiatsis.gov.au
108
AIATSIS Budget Statements
2.1
BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1
Outcome 1: Further understanding of Australian Indigenous cultures, past and
present through undertaking and publishing research, and providing access to
print and audiovisual collections.
Budgeted expenses for Outcome 1
This table shows how much the entity intends to spend (on an accrual basis) on
achieving the outcome, broken down by program, as well as by administered and
departmental funding sources.
Table 2.1.1: Budgeted expenses for Outcome 1
Outcome 1: Further understanding of Australian Indigenous cultures, past and present through undertaking
and publishing research, and providing access to print and audiovisual collections
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
Program 1: Australian Institute of Aboriginal and Torres Strait Islander Studies
Revenue from Government
Ordinary annual services (Appropriation
19,817
19,493
19,370
Bill No. 1)
Revenues from other independent sources
5,960
5,960
5,960
Total expenses for Program 1
25,777
25,453
25,330
Total expenses for Outcome 1
25,777
25,453
25,330
Average staffing level (number)
2016–17
152
109
2017–18
121
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
19,372
19,448
5,960
25,332
25,332
5,960
25,408
25,408
AIATSIS Budget Statements
Performance criteria for Outcome 1
This section details the performance criteria for each program associated with
Outcome 1. It summarises how each program is delivered and where 2017–18 Budget
measures have created new programs or materially changed existing programs.
Outcome 1: Further understanding of Australian Indigenous cultures, past and
present through undertaking and publishing research, and providing access to
print and audiovisual collections.
Program 1.1: AIATSIS Collections
Objective
Through collection, preservation, research and promotion AIATSIS will
continuously expand its collections and their accessibility to both Aboriginal and
Torres Strait Islander peoples and non-Indigenous communities of Australia.
Delivery



Purposes
Preservation of, and making discoverable, the national collection of cultural
materials relevant to Aboriginal and Torres Strait Islander peoples
Access to the collections, including advice and support for clients and copies
(where appropriate) of materials requested
Assessment and accession of new material into the collections.
Together with Aboriginal and Torres Strait Islander peoples, AIATSIS works to
strengthen and promote knowledge and understanding of Indigenous Australia,
past, present and future. We do this through developing, preserving and providing
access to our national collection of Aboriginal and Torres Strait Islander culture
and heritage.
Performance information 1.1 AIATSIS Collections
Year
Performance criteria
Targets
2016–17
Ensure preservation of Aboriginal and Torres
Strait Islander cultural heritage and enable all
Australians to appropriately access and
experience knowledge of Aboriginal and
Torres Strait Islander cultures, traditions,
languages and stories, past and present.
Percentage change in the rate at
which material is offered to the
collection: +1%
The key measure of performance is the ability
to accept new material that is offered to and
accepted into the collection, the rate at which
it is preserved and made discoverable and
accessible.
Percentage increase in the rate
of preservation of the collection:
+5%
2016–17 saw the final implementation stages
of a world class digital asset management
system, an electronic document management
system, and the procurement of a new digital
storage system.
Capital planning to rebuild and refurbish the
vaults, as well the refurbishment of staff
accommodation and the development of
exhibition and public spaces, was also
finalised in 2016–17.
110
Percentage increase in the rate
at which material is accepted
into the collection: +1.5%
Percentage increase in the rate
at which the collection is made
discoverable: +1%
Percentage increase in the rate
at which the collection is
accessed: +5%
AIATSIS is on track to deliver
against the above targets.
AIATSIS Budget Statements
Year
Performance criteria
Targets
2017–18
Ability to accept new material that is offered
to and accepted into the collection, the rate at
which it is preserved and made discoverable
and accessible.
Percentage increase in the rate
at which material is accepted
into the collection: +2%
Percentage increase in the rate
at which the collection is made
discoverable: +1.5%
Percentage increase in the rate
at which the collection is
accessed: +10%
2018–19 and
beyond
Preservation of Aboriginal and Torres Strait
Islander cultural heritage to enable all
Australians to appropriately access and
experience knowledge of Aboriginal and
Torres Strait Islander cultures, traditions,
languages and stories, past and present.
Percentage increase in the rate
of preservation of the collection:
+5%
As per 2017–18
As per 2017–18
111
AIATSIS Budget Statements
Program 1.2: AIATSIS research and ethics
Objective
Through research AIATSIS will support Aboriginal and Torres Strait Islander
peoples to secure and strengthen their knowledge and cultural heritage and
encourage non-Indigenous Australians to understand and value Aboriginal and
Torres Strait Islander knowledge and cultural heritage.
Delivery




Purposes
Ethics and protocols for research, publishing and other activities relating to
collections, and related to Aboriginal and Torres Strait Islander peoples
Research projects on matters of importance to Aboriginal and Torres Strait
Islander peoples
Research and consultancy services
Advice on policy and practice in areas of interest to Aboriginal and Torres
Strait Islander peoples.
Working in partnership with Aboriginal and Torres Strait Islander peoples,
government and industry, AIATSIS undertakes high quality ethical and impact
driven research in areas of strategic priority. AIATSIS produces high quality
research outputs and provides leadership in the practice of ethical research,
publishing, engagement and collection.
Performance information 1.2 AIATSIS research and ethics
Year
Performance criteria
Targets
2016–17
Contracted outputs and outcomes were
delivered to actively strengthen, preserve,
and renew Indigenous knowledge, promote
understanding of Indigenous peoples and
contribute positively to the wellbeing of
Aboriginal and Torres Strait Islander peoples.
Monitor levels of quality,
engagement and impact through:




Number and value of
research publications,
grants and other outputs:
10% increase in numbers,
maintain ratio
Number and value of
research partnerships and
applied research: 2%
increase
Number and value of
research impact
assessments: Evaluations
Reach and take-up of
standards and guidance on
best practice in research,
engagement, publication
and collections: 50%
increase in external take-up.
AIATSIS is on track to deliver
against the above targets.
2017–18
Delivery of contracted outputs and outcomes
to actively strengthen, preserve, and renew
Indigenous knowledge, promote
understanding of Indigenous peoples and
contribute positively to the wellbeing of
Aboriginal and Torres Strait Islander peoples.
100% contracts completed.
Monitor levels of quality, and
efficiency:




112
Number and value of
research publications,
grants and other outputs:
10% increase in numbers,
maintain ratio
Number of staff publications
(& per researcher)
Number of staff
presentations (5 per
researcher)
Size of grants and research
contracts
AIATSIS Budget Statements
Year
Performance criteria
Targets

Revenue from research
activities (ratio income to
investment).
Monitor levels of engagement
and impact through:




2018–19 and
beyond
As per 2017–18
Number and value of
research partnerships and
applied research: 2%
increase
Number and value of
research impact
assessments: Evaluations
Reach and take-up of
standards and guidance on
best practice in research,
engagement, publication
and collections: 100%
increase
50% increase in external
take-up.
As per 2017–18
113
AIATSIS Budget Statements
Program 1.3: AIATSIS public programs, publishing, communications and
engagement
Objective
Through this program AIATSIS will engage with Aboriginal and Torres Strait
Islander communities to build knowledge, to share Indigenous culture and
heritage and will provide experiences to all Australians through a public program,
digital engagement and access and publishing.
Delivery





Purposes
Engage with Aboriginal and Torres Strait Islander communities through
research, publishing and collections activities
Harness digital technology to communicate with quality online content and
resources about Aboriginal and Torres Strait Islander peoples
Enhance community access to collections online and through a public
program
Use technology to link communities to collections
Quality publications for trade and a variety of open access formats.
Build knowledge and understanding of Indigenous Australia, past present and
future, through curated and relevant public programs and publications, engaging
the public with rich and informative digital content and sharing the collection and
AIATSIS research online.
Performance information 1.3 AIATSIS public programs, publishing,
communications and engagement
Year
Performance criteria
Targets
2016–17
Target groups impacted include: Aboriginal
and Torres Strait Islander peoples and
communities; non-Indigenous Australians;
academic researchers; students;
governments, industry; practitioners; people
world-wide who are interested in Aboriginal
and Torres Strait Islander culture and
heritage.
Number and value of AIATSIS
publications and products: 10%
increase in number of
publications
This program enables all Australians to learn
about and experience knowledge of
Aboriginal and Torres Strait Islander cultures,
traditions, languages and stories, past and
present.
Following the 2015–16 a review of Aboriginal
Studies Press, AIATSIS undertook a refresh
of its existing publishing model to ensure
innovation and maximum value in its
publication of material related to Indigenous
Australia in a variety of formats.
Percentage increase in website
traffic +10%
Percentage increase in social
media community +10%
Train and develop 10 web
publishers and editors
Percentage increase in
Indigenous members +8%
Percentage increase in members
+5%
Percentage increase in
partnerships +10%
Percentage increase in value of
partnerships +5%
AIATSIS is on track to deliver
against the above targets.
2017–18
Target groups include: Aboriginal and Torres
Strait Islander peoples and communities; nonIndigenous Australians; academic
researchers; students; governments, industry;
practitioners; people world-wide who are
interested in Aboriginal and Torres Strait
Islander culture and heritage.
This program enables all Australians to learn
about and experience knowledge of
Aboriginal and Torres Strait Islander cultures,
traditions, languages and stories, past and
present.
Following the 2015–16 review of Aboriginal
114
Number and value of
publications:



6 books published
($243,000 revenue)
journal editions ($20,000
revenue)
5 other publications.
Monitor the reach and impact of
communication and community
engagement activity through:


Media coverage
Website and social media
AIATSIS Budget Statements
Year
Performance criteria
Targets
Studies Press, AIATSIS will undertake a
refresh of its existing publishing model to
ensure innovation and maximum value in its
publication of material related to Indigenous
Australia in a variety of formats.














2018–19 and
beyond
As per 2017–18
reach and activity
Reach:- estimated actuals
35 media releases, alerts
and web news stories
10 AIATSIS e-newsletters
10 Members e-newsletters
35 interviews by media
outlets with AIATSIS staff or
affiliates
26 requests for
content/information by
media completed
Percentage increase in
website traffic +10%
% increase in Indigenous
author contributions +5%
Train and develop web
publishers and editors 10
Percentage increase in
Indigenous members +8%
Percentage increase in
members +5%
Percentage increase in
partnerships +5%
Percentage increase in
value of partnerships +5%
Percentage increase in
value of a public program
+5%.
As per 2017–18
115
AIATSIS Budget Statements
Section 3: Budgeted financial statements
Section 3 presents budgeted financial statements which provide a comprehensive
snapshot of entity finances for the 2017–18 Budget year, including the impact of budget
measures and resourcing on financial statements.
3.1
BUDGETED FINANCIAL STATEMENTS
3.1.1 Differences between entity resourcing and financial statements
There are no material variances between the entity resources table and the budgeted
financial statements.
3.1.2 Explanatory notes and analysis of budgeted financial statements
Budgeted departmental income statements
The statement shows the estimated net cost of services for AIATSIS.
The budgeted net cost of services to AIATSIS for delivering its programs in 2017–18 is
$19.5 million.
Expenses
Total departmental expenses budgeted for in 2017–18 are $25.5 million, comprising
$10.8 million for employee expenses, $13.5 million for suppliers and $1.2 million for
depreciation and amortisation.
Income
Total departmental own-source income budgeted for in 2017–18 is $6.0 million,
comprising $0.8 million from sale of goods and rendering of services, $0.5 million from
interest and $4.7 million from other sources.
Budgeted departmental balance sheet
The statement shows the estimated end of year position for departmental assets and
liabilities.
Assets
Total departmental assets budgeted for 2017–18 are $41.5 million, comprising
$26.7 million in non-financial assets and $14.8 million in financial assets.
Non-financial assets include $12.3 million for land and buildings and $13.9 million for
property, plant and equipment.
Liabilities
Total departmental liabilities budgeted for in 2017–18 are $4.4 million, comprising
$2.7 million in provisions and $1.7 million in payables.
116
AIATSIS Budget Statements
Budgeted departmental statement of cash flows
The statement provides information on estimates of the extent and nature of cash flows
by categorising the expected cash flows against operating, investing and financing
activities.
Statement of changes in equity – summary of movement
The statement shows the expected movement of equity during the budget year.
117
AIATSIS Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS TABLES
Table 3.1: Comprehensive income statement (showing net cost of services) for
the period ended 30 June
2016–17
Estimated
actual
$'000
EXPENSES
Employee benefits
11,147
Suppliers
13,434
Depreciation and amortisation
1,196
Total expenses
25,777
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of
services
797
Interest
450
Other
4,713
Total own-source revenue
5,960
Total own-source income
5,960
Net (cost of)/contribution by
(19,817)
services
Revenue from Government
19,817
Surplus/(deficit) attributable to the
Australian Government
Total comprehensive income/(loss)
Total comprehensive income/(loss)
attributable to the Australian
Government
Prepared on Australian Accounting Standards basis.
118
2017–18
Budget
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
10,822
13,435
1,196
25,453
10,728
13,406
1,196
25,330
10,662
13,474
1,196
25,332
10,738
13,474
1,196
25,408
797
450
4,713
5,960
5,960
797
450
4,713
5,960
5,960
797
450
4,713
5,960
5,960
797
450
4,713
5,960
5,960
(19,493)
19,493
(19,370)
19,370
(19,372)
19,372
(19,448)
19,448
$'000
-
-
-
-
-
-
-
-
AIATSIS Budget Statements
Table 3.2: Budgeted departmental balance sheet (as at 30 June)
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
ASSETS
Financial assets
Cash and cash equivalents
144
144
Trade and other receivables
2,164
2,164
Other investments
12,799
12,495
Total financial assets
15,107
14,803
Non-financial assets
Land and buildings
12,549
12,336
Property, plant and equipment
13,285
13,910
Intangibles
215
181
Inventories
43
43
Other non-financial assets
230
230
Total non-financial assets
26,322
26,700
Assets held for sale
Total assets
41,429
41,503
LIABILITIES
Payables
Suppliers
655
655
Other payables
1,043
1,043
Total payables
1,698
1,698
Provisions
Employee provisions
2,657
2,657
Total provisions
2,657
2,657
Total liabilities
4,355
4,355
Net assets
37,074
37,148
EQUITY*
Parent entity interest
Contributed equity
3,761
3,835
Reserves
13,971
13,971
Retained surplus (accumulated
19,342
19,342
deficit)
Total parent entity interest
37,074
37,148
Total equity
37,074
37,148
Prepared on Australian Accounting Standards basis.
*
Equity is the residual interest in assets after deduction of liabilities.
119
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
144
2,164
12,191
14,499
144
2,164
11,887
14,195
144
2,164
11,583
13,891
12,123
14,535
147
43
230
27,078
11,910
15,160
113
43
230
27,456
11,697
15,785
79
43
230
27,834
41,577
41,651
41,725
655
1,043
1,698
655
1,043
1,698
655
1,043
1,698
2,657
2,657
4,355
37,222
2,657
2,657
4,355
37,296
2,657
2,657
4,355
37,370
3,909
13,971
3,983
13,971
4,057
13,971
19,342
19,342
19,342
37,222
37,222
37,296
37,296
37,370
37,370
AIATSIS Budget Statements
Table 3.3: Departmental statement of changes in equity — summary of
movement (Budget year 2017–18)
Retained
earnings
$'000
Opening balance as at 1 July 2017
Balance carried forward from
19,342
previous period
19,342
Adjusted opening balance
Transactions with owners
Contributions by owners
Equity injection - Appropriation
Sub-total transactions with
owners
Estimated closing balance as at
19,342
30 June 2018
Closing balance attributable to
19,342
the Australian Government
Prepared on Australian Accounting Standards basis.
120
Asset
revaluation
reserve
$'000
Contributed
equity/
capital
$'000
Total
equity
$'000
13,971
3,761
37,074
13,971
3,761
37,074
-
74
74
-
74
74
13,971
3,835
37,148
13,971
3,835
37,148
AIATSIS Budget Statements
Table 3.4: Budgeted departmental statement of cash flows (for the period ended
30 June)
2016–17
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
19,817
Sale of goods and rendering of
875
services
Interest
450
Other
4,713
Total cash received
25,855
Cash used
Employees
11,147
Suppliers
13,434
Total cash used
24,581
Net cash from/(used by)
1,274
operating activities
INVESTING ACTIVITIES
Cash received
Investments
726
Total cash received
726
Cash used
Purchase of property, plant and
2,074
equipment and intangibles
Total cash used
2,074
Net cash from/(used by)
(1,348)
investing activities
FINANCING ACTIVITIES
Cash received
Contributed equity
74
Total cash received
74
Net cash from/(used by)
74
financing activities
Net increase/(decrease) in cash
held
Cash and cash equivalents at the
144
beginning of the reporting period
Cash and cash equivalents at
144
the end of the reporting period
Prepared on Australian Accounting Standards basis.
121
2017–18
Budget
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
19,493
19,370
19,372
19,448
797
797
797
797
450
4,713
25,453
450
4,713
25,330
450
4,713
25,332
450
4,713
25,408
10,822
13,435
24,257
10,728
13,406
24,134
10,662
13,474
24,136
10,738
13,474
24,212
1,196
1,196
1,196
1,196
304
304
304
304
304
304
304
304
1,574
1,574
1,574
1,574
1,574
1,574
1,574
1,574
(1,270)
(1,270)
(1,270)
(1,270)
$'000
74
74
74
74
74
74
74
74
74
74
74
74
-
-
-
-
144
144
144
144
144
144
144
144
AIATSIS Budget Statements
Table 3.5: Departmental capital budget statement (for the period ended 30 June)
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
NEW CAPITAL APPROPRIATIONS
Equity injections - Bill 2
Total new capital appropriations
Provided for:
Purchase of non-financial assets
Total items
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriations (a)
74
74
74
74
74
74
74
74
74
74
74
74
74
74
74
74
74
74
74
74
74
74
74
74
74
Funded internally from departmental
2,000
1,500
1,500
1,500
1,500
resources (b)
TOTAL
2,074
1,574
1,574
1,574
1,574
RECONCILIATION OF CASH USED
TO ACQUIRE ASSETS TO ASSET
MOVEMENT TABLE
Total purchases
2,074
1,574
1,574
1,574
1,574
Total cash used to acquire assets
2,074
1,574
1,574
1,574
1,574
Prepared on Australian Accounting Standards basis.
(a) Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.
(b) Includes the following sources of funding:
- current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB)
- donations and contributions
- gifts
- internally developed assets
- proceeds from the sale of assets.
122
AIATSIS Budget Statements
Table 3.6: Statement of asset movements (Budget year 2017–18)
Buildings
$'000
As at 1 July 2017
Gross book value
Accumulated depreciation/
amortisation and impairment
Opening net book balance
Capital asset additions
Estimated expenditure on new
or replacement assets
By purchase - appropriation equity (a)
By purchase - appropriation ordinary
annual services (b)
Total additions
Other movements
Depreciation/amortisation expense
Total other movements
As at 30 June 2018
Gross book value
Accumulated depreciation/
amortisation and impairment
Closing net book balance
Other property,
plant and
equipment
$'000
Heritage
and
cultural
$'000
12,761
3,804
10,431
(212)
12,549
(799)
3,005
(151)
10,280
Computer
software and
intangibles
$'000
1,109
(894)
215
Total
$'000
28,105
(2,056)
26,049
-
-
74
-
74
-
1,500
1,500
74
-
1,500
1,574
(213)
(213)
(798)
(798)
(151)
(151)
12,761
5,304
10,505
(425)
12,336
(1,597)
3,707
(302)
10,203
(34)
(34)
1,109
(928)
181
(1,196)
(1,196)
29,679
(3,252)
26,427
Estimated operating expenditure in income statement for heritage and cultural assets
Operations and Maintenance
2,270
Preservation and Conservation
3,261
Total operating expenditure on heritage and cultural assets
5,531
Prepared on Australian Accounting Standards basis.
(a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill
(No. 2) 2016–17, including CDABs.
(b) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No. 1)
2016–17 for depreciation/amortisation expenses, DCBs or other operational expenses.
123
AIATSIS Budget Statements
Table 3.7: Schedule of budgeted income and expenses administered on behalf of
Government (for the period ended 30 June)
AIATSIS has no income and expenses administered on behalf of Government therefore
Table 3.7 is not presented.
Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of
Government (as at 30 June)
AIATSIS has no assets and liabilities administered on behalf of Government therefore
Table 3.8 is not presented.
Table 3.9: Schedule of budgeted administered cash flows (for the period ended
30 June)
AIATSIS has no administered cash flows therefore Table 3.9 is not presented.
Table 3.10: Administered capital budget statement (for the period ended 30 June)
AIATSIS has no administered capital budget therefore Table 3.10 is not presented.
Table 3.11: Statement of administered asset movements (Budget year 2017–18)
AIATSIS has no administered asset movements therefore Table 3.11 is not presented.
124
AUSTRALIAN INSTITUTE FOR
TEACHING AND SCHOOL
LEADERSHIP
ENTITY RESOURCES AND PLANNED
PERFORMANCE
125
AUSTRALIAN INSTITUTE FOR TEACHING AND SCHOOL
LEADERSHIP
SECTION 1: OVERVIEW AND RESOURCES ................................................................. 128
1.1
Strategic direction statement ........................................................................ 128
1.2
Entity resource statement ............................................................................. 129
SECTION 2: OUTCOMES AND PLANNED PERFORMANCE...................................... 130
2.1
Budgeted expenses and performance for Outcome 1 .................................. 131
SECTION 3: BUDGETED FINANCIAL STATEMENTS ................................................. 134
3.1
Budgeted financial statements...................................................................... 134
3.2
Budgeted financial statements tables ........................................................... 135
127
AUSTRALIAN INSTITUTE FOR TEACHING AND SCHOOL
LEADERSHIP
Section 1: Overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
The Australian Institute for Teaching and School Leadership (AITSL) commenced
operations on 1 January 2010.
AITSL is a public company limited by guarantee under the Corporations Act 2001 and is
subject to the Public Governance, Performance and Accountability Act 2013. The Minister
for Education and Training is the owner and sole member of the company. AITSL
operates under its own constitution, with priorities set through letters from the
Minister from time to time. Its primary purpose is to promote excellence in the
profession of teaching and school leadership.
The eleven-member Board, appointed by the Minister for Education and Training,
includes a Chair and Deputy Chair and nine further Directors nominated by the
Australian Government for their educational expertise.
AITSL plays a key role in leading significant national educational reform so that
teachers and school leaders have the maximum impact on student learning in all
Australian schools.
AITSL’s policy direction and work priorities give particular attention to three key
areas: Initial Teacher Education; School Leadership; and Quality Teaching.
The Teacher Education Ministerial Advisory Group (TEMAG) reported to the
Australian Government early in 2015. The Government response sets out a major role
for AITSL in actioning the recommendations accepted by Government.
128
AITSL Budget Statements
1.2
ENTITY RESOURCE STATEMENT
Table 1.1 shows the total funding from all sources available to the entity for its
operations and to deliver programs and services on behalf of the Government.
The table summarises how resources will be applied by outcome (government strategic
policy objectives) and by administered (on behalf of the Government or the public) and
departmental (for the entity’s operations) classification.
For more detailed information on special accounts and special appropriations, please
refer to Budget Paper No. 4 – Agency Resourcing.
Information in this table is presented on a resourcing (that is, appropriations/cash
available) basis, while the ‘Budgeted expenses by Outcome’ table in Section 2 and the
financial statements in Section 3 are presented on an accrual basis.
Table 1.1: AITSL resource statement — Budget estimates for 2017–18 as at
Budget May 2017
2016–17
estimated
actual
$'000
2017–18
estimate
$'000
Opening balance/cash reserves at 1 July
1,195
983
Funds from Government
Amounts received from related entities
Amounts from portfolio department (a)
Total amounts received from related entities
Total funds from Government
12,061
12,061
12,061
11,861
11,861
11,861
Funds from other sources
Interest
Sale of goods and services
Other
Total funds from other sources
Total net resourcing for AITSL
70
1,181
99
1,350
14,606
70
1,202
104
1,376
14,220
2016–17
2017–18
Average staffing level (number)
56
56
Prepared on a resourcing (i.e. appropriations available) basis.
Note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement.
(a) Funding provided by the portfolio department that is not specified within the Annual Appropriation Bills
as a payment to that corporate entity (for example, a grant awarded to a corporate entity from one of its
portfolio department's administered programs).
129
AITSL Budget Statements
Section 2: Outcomes and planned performance
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programs are the
primary vehicle by which government entities achieve the intended results of their
outcome statements. Entities are required to identify the programs which contribute to
government outcomes over the Budget and forward years.
Each outcome is described below together with its related programs. The following
provides detailed information on expenses for each outcome and program, further
broken down by funding source.
Note:
Performance reporting requirements in the Portfolio Budget Statements are part of the
enhanced Commonwealth performance framework established by the Public
Governance, Performance and Accountability Act 2013. It is anticipated that the
performance criteria described in Portfolio Budget Statements will be read with
broader information provided in an entity’s corporate plans and annual performance
reporting—included in Annual Reports—to provide an entity’s complete performance
story.
The most recent corporate plan for AITSL can be found at: www.aitsl.edu.au
The most recent performance reporting for AITSL can be found in the Annual Report
at: www.aitsl.edu.au
130
AITSL Budget Statements
2.1
BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1
Outcome 1: Enhance the quality of teaching and school leadership through
developing standards, recognising teaching excellence, providing
professional development opportunities, and supporting the teaching
profession.
Budgeted expenses for Outcome 1
This table shows how much the entity intends to spend (on an accrual basis) on
achieving the outcome, broken down by program, as well as by administered and
departmental funding sources.
Table 2.1.1: Budgeted expenses for Outcome 1
Outcome 1: Enhance the quality of teaching and school leadership through developing standards,
recognising teaching excellence, providing professional development oportunities and supporting the
teaching profession.
2016–17
2017–18
2018–19
2019–20
2020–21
Estimated
Budget
Forward
Forward
Forward
actual
estimate
estimate
estimate
$'000
$'000
$'000
$'000
$'000
Program 1.1: Assistance for Quality Teaching and Learning
Revenue from Government
Payment from related entities
12,061
Revenues from other independent sources
1,350
Total expenses for Program 1.1
13,411
Outcome 1 totals by resource type
Revenue from Government
Payment from related entities
12,061
Revenues from other independent sources
1,350
Total expenses for Outcome 1
13,411
Average staffing level (number)
2016–17
56
131
11,861
1,376
13,237
11,461
1,400
12,861
-
-
11,861
1,376
13,237
11,461
1,400
12,861
-
-
2017–18
56
AITSL Budget Statements
Performance criteria for Outcome 1
This section details the performance criteria for each program associated with
Outcome 1. It summarises how each program is delivered and where 2017–18 Budget
measures have created new programs or materially changed existing programs.
Outcome 1: Enhance the quality of teaching and school leadership through
developing standards, recognising teaching excellence, providing professional
development opportunities, and supporting the teaching profession.
Program 1.1: Assistance for Quality Teaching and Learning
Objective
This program enables AITSL to work collaboratively with the eight state and
territory education departments and their Ministers, the Catholic and independent
school sectors, teacher educators, teacher regulatory authorities, teacher unions,
professional and community organisations and teachers and principals throughout
Australia to strengthen the profession.
Delivery
The program includes a range of targeted initiatives which lead, shape and
complement the work of other education agencies, to enhance the quality of initial
teacher education, teaching and school leadership.
Purposes
AITSL plays a key role in leading significant national educational reform for the
Australian, state and territory governments to promote excellence in initial teacher
education, teaching and school leadership to achieve maximum impact on student
learning in all Australian schools.
Performance information 1.1 Assistance for Quality Teaching and Learning
Year
Performance criteria
Targets
2016–17
AITSL continues to promote
excellence in the profession of
teaching and school leadership.
Initial Teacher Education (ITE)
Programs in Australia

AITSL expected to achieve all
targets.
Continue to implement relevant
elements of the Government
response to the recommendations of
TEMAG including monitoring and
maintaining the agreed strengthened
approach to the Accreditation of
Initial Teacher Education programs.
Australian Professional Standard for
Principals

Standard and support
materials/research promulgated
effectively.
Australian Professional Standards for
Teachers

Standards and support
materials/research, including for
Australian Teacher Performance and
Development Framework and the
Australian Charter for the
Professional Learning of Teachers
and School Leaders, promulgated
effectively.
Assessment for Migration

132
The role of assessing authority under
the Migration Regulations 1994 for
the purposes of skilled migration to
Australia as a pre-primary, primary or
secondary, or special education
school teacher successfully fulfilled.
AITSL Budget Statements
Year
Performance criteria
Targets
Undertaking and engaging with
national and international research and
innovative developments in best
practice

Evidence base for AITSL’s work
enhanced by research, involvement
with national and international
agencies and experts.
Implementation of measures to ensure
high standards of corporate
governance, including:


2017–18
As per 2016–17
effective board governance
arrangements maintained
audit, risk management and financial
advisory structures operating with
transparency and rigour.
As per 2016–17
Initial Teacher Education (ITE)
Programs in Australia

Continue to implement relevant
elements of the Government
response to the recommendations of
TEMAG including monitoring and
maintaining the agreed strengthened
approach to the Accreditation of
Initial Teacher Education programs
and implementing National Initial
Teacher Education and Teacher
Workforce Data Strategy.
Australian Professional Standards for
Teachers

2018–19 and
beyond
As per 2017–18
Standards and support
materials/research, including for
strengthened guidance material for
teacher professional learning,
certification of Highly Accomplished
and Lead teachers and teacher
registration, promulgated effectively.
As per 2017–18
133
AITSL Budget Statements
Section 3: Budgeted financial statements
Section 3 presents budgeted financial statements which provide a comprehensive
snapshot of entity finances for the 2017–18 Budget year, including the impact of Budget
measures and resourcing on financial statements.
3.1
BUDGETED FINANCIAL STATEMENTS
3.1.1 Differences between entity resourcing and financial statements
There are no material variances between the entity resources table and the budgeted
financial statements.
3.1.2 Explanatory notes and analysis of budgeted financial statements
In November 2015, the Department of Education and Training agreed to a funding
arrangement for the three year period 2015–16 to 2017–18. The agreement commits
funding of $35.8 million for the three years. The funding includes $12.7 million to
enable AITSL to implement the Government’s response to the recommendation of the
Teacher Education Ministerial Advisory Group (TEMAG). The TEMAG funding is in
addition to AITSL’s core funding and commenced in 2015–16. In February 2017, the
Department of Education and Training agreed to provide additional funding of
$11.46 million to enable AITSL to continue to pursue its work through the 2018–19
year. The additional funding includes $3.7 million toward the Government’s response
to the recommendations of TEMAG.
The funding for the 2017–18 Budget year will be $11.861 million, a slight decrease from
the 2016–17 year of $12.061 million. The income from Overseas Skills Assessment is
estimated to be $1.0 million and income earned for other services provided to third
parties is estimated to be $0.2 million.
AITSL is budgeting for a break even result in the financial year 2016–17. The budget for
the 2017–18 financial year is a break even result.
The net asset position of $4.7 million as at 30 June 2016 is expected to be unchanged at
30 June 2017. Total assets at 30 June 2017 are estimated to be $6.7 million, comprising
$5.9 million of financial assets and $0.8 million of non-financial assets.
Total liabilities at 30 June 2017 are estimated to be $2.0 million of which $0.6 million
will be accrued employee entitlements, $0.8 million being supplier payables and
$0.6 million of other provisions.
134
AITSL Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS TABLES
Table 3.1: Comprehensive income statement (showing net cost of services) for
the period ended 30 June
2016–17
Estimated
actual
$'000
EXPENSES
Employee benefits
7,374
Suppliers
5,892
Depreciation and amortisation
145
Total expenses
13,411
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of
services
1,181
Interest
70
Rental income
99
Other
12,061
Total own-source revenue
13,411
Total own-source income
13,411
Net (cost of)/contribution by
services
Surplus/(deficit) attributable to the
Australian Government
OTHER COMPREHENSIVE INCOME
Total other comprehensive income
Total comprehensive income/(loss)
Total comprehensive income/(loss)
attributable to the Australian
Government
Prepared on Australian Accounting Standards basis.
135
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
7,801
5,304
132
13,237
7,996
4,713
152
12,861
-
-
1,202
70
104
11,861
13,237
13,237
1,222
70
108
11,461
12,861
12,861
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
AITSL Budget Statements
Table 3.2: Budgeted departmental balance sheet (as at 30 June)
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
ASSETS
Financial assets
Cash and cash equivalents
1,195
983
Trade and other receivables
3,430
3,375
Other investments
1,316
1,316
Total financial assets
5,941
5,674
Non-financial assets
Land and buildings
Property, plant and equipment
774
667
Investment property
Intangibles
125
Total non-financial assets
774
792
Assets held for sale
Total assets
6,715
6,466
LIABILITIES
Payables
Suppliers
750
500
Total payables
750
500
Provisions
Employee provisions
648
664
Other provisions
624
609
Total provisions
1,272
1,273
Total liabilities
2,022
1,773
Net assets
4,693
4,693
EQUITY*
Retained surplus (accumulated
4,693
4,693
deficit)
Total parent entity interest
4,693
4,693
Total equity
4,693
4,693
Prepared on Australian Accounting Standards basis.
*
Equity is the residual interest in assets after deduction of liabilities.
136
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
1,146
3,265
1,316
5,727
-
-
565
-
-
75
640
-
-
-
-
400
400
-
-
680
594
1,274
1,674
4,693
-
-
4,693
-
-
4,693
4,693
-
-
6,367
AITSL Budget Statements
Table 3.3: Departmental statement of changes in equity — summary of
movement (Budget year 2017–18)
Retained
earnings
$'000
Asset
revaluation
reserve
$'000
Other
reserves
$'000
Contributed
equity/
capital
$'000
Total
equity
$'000
Opening balance as at 1 July 2017
Balance carried forward from
previous period
4,693
-
-
-
4,693
Adjusted opening balance
4,693
Comprehensive income
Other comprehensive income
Surplus/(deficit) for the period
Total comprehensive income
Estimated closing balance as at
4,693
30 June 2018
Less: non-controlling interests
Closing balance attributable to
4,693
the Australian Government
Prepared on Australian Accounting Standards basis.
-
-
-
4,693
-
-
-
-
-
-
-
4,693
-
-
-
-
4,693
137
-
AITSL Budget Statements
Table 3.4: Budgeted departmental statement of cash flows (for the period ended
30 June)
2016–17
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Grants received
13,272
Sale of goods and rendering of
1,219
services
Interest
70
Other
109
Total cash received
14,670
Cash used
Employees
7,223
Suppliers
6,779
Net GST paid
631
Total cash used
14,633
Net cash from/(used by)
37
operating activities
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property,
2
plant and equipment
Total cash received
2
Cash used
Purchase of property, plant and
19
equipment and intangibles
Total cash used
19
Net cash from/(used by)
(17)
investing activities
Net increase/(decrease) in cash
20
held
Cash and cash equivalents at the
1,175
beginning of the reporting period
Cash and cash equivalents at
1,195
the end of the reporting period
Prepared on Australian Accounting Standards basis.
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
13,098
12,705
-
-
1,222
1,242
-
-
70
114
14,504
70
118
14,135
-
-
7,779
6,120
667
14,566
7,975
5,313
684
13,972
-
-
163
-
-
-
-
-
-
-
-
-
-
150
-
-
-
150
-
-
-
(150)
-
-
-
(212)
163
-
-
1,195
983
-
-
983
1,146
-
-
(62)
Table 3.5: Departmental capital budget statement (for the period ended 30 June)
AITSL does not have a departmental budget therefore Table 3.5 is not presented
138
AITSL Budget Statements
Table 3.6: Statement of asset movements (Budget year 2017–18)
Other property,
plant and
equipment
$'000
As at 1 July 2017
Gross book value
Accumulated depreciation/
amortisation and impairment
Opening net book balance
Capital asset additions
Estimated expenditure on new
or replacement assets
By purchase - other
Total additions
Other movements
Depreciation/amortisation expense
Total other movements
Computer
software and
intangibles
$'000
Total
$'000
1,808
12
-
1,820
(1,046)
762
12
-
(1,046)
774
-
150
150
150
150
-
(25)
(25)
(132)
(132)
(107)
(107)
As at 30 June 2018
Gross book value
Accumulated depreciation/
amortisation and impairment
Heritage
and
cultural
$'000
1,808
12
150
1,970
(1,153)
(25)
(1,178)
Closing net book balance
655
12
125
792
Prepared on Australian Accounting Standards basis.
(a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill
(No. 2) 2016–17, including CDABs.
(b) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No. 1)
2016–17 for depreciation/amortisation expenses, DCBs or other operational expenses.
(c) Net proceeds may be returned to the OPA.
Table 3.7: Schedule of budgeted income and expenses administered on behalf of
Government (for the period ended 30 June)
AITSL has no income and expenses administered on behalf of Government therefore
Table 3.7 is not presented.
Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of
Government (as at 30 June)
AITSL has no assets and liabilities administered on behalf of Government therefore
Table 3.8 is not presented.
Table 3.9: Schedule of budgeted administered cash flows (for the period ended
30 June)
AITSL has no administered cash flows therefore Table 3.9 is not presented.
Table 3.10: Administered capital budget statement (for the period ended 30 June)
AITSL has no administered capital budget therefore Table 3.10 is not presented.
139
AITSL Budget Statements
Table 3.11: Statement of administered asset movements (Budget year 2017–18)
AITSL has no administered asset movements therefore Table 3.11 is not presented.
140
AUSTRALIAN RESEARCH COUNCIL
ENTITY RESOURCES AND PLANNED
PERFORMANCE
141
AUSTRALIAN RESEARCH COUNCIL
SECTION 1: OVERVIEW AND RESOURCES ................................................................. 144
1.1
Strategic direction statement ........................................................................ 144
1.2
Entity resource statement ............................................................................. 146
SECTION 2: OUTCOMES AND PLANNED PERFORMANCE...................................... 148
2.1
Budgeted expenses and performance for Outcome 1 .................................. 149
SECTION 3: BUDGETED FINANCIAL STATEMENTS ................................................. 157
3.1
Budgeted financial statements...................................................................... 157
3.2
Budgeted financial statements tables ........................................................... 158
143
AUSTRALIAN RESEARCH COUNCIL
Section 1: Overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
The Australian Research Council (ARC) is a non-corporate Commonwealth entity
established under the Australian Research Council Act 2001. The ARC is responsible for
administering the National Competitive Grants Program (NCGP), measuring research
excellence through Excellence in Research for Australia (ERA) and providing advice on
research matters.
Through the NCGP, the ARC supports excellent research and research training across
all disciplines, awarding funding based on a competitive peer review process. The
NCGP comprises two programs, Discovery and Linkage, which fund a range of
complementary schemes that provide funding for basic and applied research, research
training, research collaborations and infrastructure.
The ARC administers ERA, which assesses research quality by research discipline at
eligible Australian higher education institutions. ERA is an established evaluation
framework that reflects the Government’s commitment to a transparent and
streamlined approach to research evaluation. The ARC is also responsible for
developing and implementing an Engagement and Impact assessment, announced by
the Australian Government in December 2015 as part of the National Science and
Innovation Agenda (NISA).
The ARC’s priorities for 2017–18 include:

delivering the NCGP effectively and efficiently

completing preparations for and conducting the ERA 2018 evaluation

continuing to support the Government’s NISA by:
- conducting a continuous application process under the Linkage Projects
scheme
- conducting a pilot of the Engagement and Impact assessment and preparing
for and conducting the full Engagement and Impact assessment to be
undertaken in 2018 as a companion to ERA 2018
- contributing to other NISA initiatives as required

continuing to provide high quality advice to the Minister on research matters
including in areas of Government focus (for example, strengthening linkages
between research and business)
144
ARC Budget Statements

working with stakeholders in delivering program and policy responsibilities,
including through consultations and in raising awareness

continuing to monitor the performance of selected NCGP schemes though
scheduled reviews and evaluations

ensuring that the NCGP supports participation by all researchers, including
Aboriginal and Torres Strait Islander researchers, women researchers and early
and mid-career researchers

maintaining a strong governance framework to support delivery against
legislative requirements as well as the Government’s expectations for the agency
as articulated in the ARC outcome.
145
ARC Budget Statements
1.2
ENTITY RESOURCE STATEMENT
Table 1.1 shows the total funding from all sources available to the entity for its
operations and to deliver programs and services on behalf of the Government.
The table summarises how resources will be applied by outcome (government strategic
policy objectives) and by administered (on behalf of the Government or the public) and
departmental (for the entity’s operations) classification.
For more detailed information on special accounts and special appropriations, please
refer to Budget Paper No. 4 – Agency Resourcing.
Information in this table is presented on a resourcing (that is, appropriations/cash
available) basis, while the ‘Budgeted expenses by Outcome’ table in Section 2 and the
financial statements in Section 3 are presented on an accrual basis.
146
ARC Budget Statements
Table 1.1: ARC resource statement — Budget estimates for 2017–18 as at Budget
May 2017
2016–17
Estimated
actual
$'000
Departmental
Annual appropriations - ordinary annual services (a)
Prior year appropriations available (b)
Departmental appropriation (c)
s74 retained revenue receipts (d)
Departmental capital budget (e)
Annual appropriations - other services - non-operating (f)
Prior year appropriations available (b)
Equity injection
Total departmental annual appropriations
Total departmental resourcing
Administered
Annual appropriations - ordinary annual services (a)
Prior year appropriations available (b)
Outcome 1
Total administered annual appropriations
Special Appropriation - Australian Research Council Act 2001 (g)
Total administered special appropriations
Special accounts (h)
Opening balance
Appropriation receipts (i)
Total special account receipts
less administered appropriations drawn from special
appropriations and credited to special accounts
Total administered resourcing
Total resourcing for the ARC
2017–18
Estimate
$'000
13,153
21,839
7
1,251
13,146
21,186
1,235
1,171
3,536
40,957
40,957
867
674
37,108
37,108
2,494
6,915
9,409
744,363
744,363
2,494
5,511
8,005
758,055
758,055
9,000
9,000
-
9,000
753,772
794,729
766,060
803,168
2016–17
2017–18
Average staffing level (number)
128
136
Prepared on a resourcing (i.e. appropriations available) basis.
Note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement.
(a) Appropriation Bill (No. 1) 2017–18.
(b) Estimated adjusted balance carried forward from previous year. Represents funding available to be
drawn in the financial year but may be subject to administrative quarantine by Department of Finance
or withheld under section 51 of the Public Governance, Performance and Accountability Act 2013
(PGPA Act).
(c) Excludes departmental capital budget (DCB).
(d) Estimated retained revenue receipts under section 74 of the PGPA Act 2013.
(e) Departmental capital budgets are not separately identified in Appropriation Bill (No. 1) and form part of
ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes,
this amount has been designated as a 'contributions by owner'.
(f)
Appropriation Bill (No. 2) 2017–18.
(g) Excludes 'Special Public Money' held in accounts like Other Trust Monies accounts (OTM), Services
for Other Government and Non-agency Bodies accounts (SOG) or Services for Other Entities and
Trust Moneys accounts (SOETM)). For further information on special appropriations and special
accounts, please refer to Budget Paper No. 4 - Agency Resourcing. Please also see Table 2.1.1 for
further information on outcome and program expenses broken down by various funding sources, e.g.
annual appropriations, special appropriations and special accounts.
(h) ARC Research Endowment Account - s80 PGPA Act 2013 [s62 Australian Research Council Act
2001].
(i)
Administered appropriations drawn from special appropriations Australian Research Council Act 2001
and credited to special account.
147
ARC Budget Statements
Section 2: Outcomes and planned performance
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programs are the
primary vehicle by which government entities achieve the intended results of their
outcome statements. Entities are required to identify the programs which contribute to
government outcomes over the Budget and forward years.
Each outcome is described below together with its related programs. The following
provides detailed information on expenses for each outcome and program, further
broken down by funding source.
Note:
Performance reporting requirements in the Portfolio Budget Statements are part of the
enhanced Commonwealth performance framework established by the Public
Governance, Performance and Accountability Act 2013. It is anticipated that the
performance criteria described in Portfolio Budget Statements will be read with
broader information provided in an entity’s corporate plans and annual performance
statements—included in Annual Reports—to provide an entity’s complete
performance story.
The most recent corporate plan for ARC can be found at: www.arc.gov.au
The most recent annual performance statement can be found in the Annual Report at:
www.arc.gov.au
148
ARC Budget Statements
2.1
BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1
Outcome 1: Growth of knowledge and innovation through managing research
funding schemes, measuring research excellence and providing advice.
Budgeted expenses for Outcome 1
This table shows how much the entity intends to spend (on an accrual basis) on
achieving the outcome, broken down by program, as well as by administered and
departmental funding sources.
Table 2.1.1: Budgeted expenses for Outcome 1
Outcome 1: Growth of knowledge and innovation through managing research funding schemes,
measuring research excellence and providing advice.
2016–17
2017–18
2018–19
2019–20
2020–21
Estimated
Budget
Forward
Forward
Forward
actual
estimate
estimate
estimate
$'000
$'000
$'000
$'000
$'000
Program 1.1: Discovery—research and research training
Administered expenses
Ordinary annual services
1,112
1,122
(Appropriation Bill No. 1)
Special appropriations
Australian Research Council Act
481,390
492,736
2001
Administered total
482,502
493,858
Total expenses for
482,502
493,858
program 1.1
Program 1.2: Linkage—cross-sector research partnerships
Administered expenses
Ordinary annual services
1,455
1,449
(Appropriation Bill No. 1)
Special appropriations
Australian Research Council Act
253,973
265,319
2001
Special accounts
ARC Research Endowment
Account - s80 PGPA Act 2013 [s62
9,000
Australian Research Council Act
2001 ]
Administered total
264,428
266,768
Total expenses for
264,428
266,768
program 1.2
Program 1.3: Excellence in Research for Australia
Administered expenses
Ordinary annual services
4,348
2,940
(Appropriation Bill No. 1)
Administered total
4,348
2,940
Total expenses for
4,348
2,940
program 1.3
149
1,148
1,171
1,200
493,708
511,540
522,537
494,856
512,711
523,737
494,856
512,711
523,737
1,491
1,524
1,561
265,843
275,444
281,366
-
-
-
267,334
276,968
282,927
267,334
276,968
282,927
3,185
3,084
3,161
3,185
3,084
3,161
3,185
3,084
3,161
ARC Budget Statements
Table 2.1.1: Budgeted expenses for Outcome 1 (continued)
2016–17
Estimated
actual
$'000
Program 1.4: ARC Departmental
Departmental expenses
Departmental appropriation
s74 retained revenue receipts (a)
Expenses not requiring appropriation
in the Budget year (b)
Departmental total
Total expenses for
program 1.4
Outcome 1 Totals by appropriation type
Administered expenses
Ordinary annual services
(Appropriation Bill No. 1)
Special appropriations
Special accounts
Administered total
Departmental expenses
Departmental appropriation
s74 retained revenue receipts (a)
Expenses not requiring appropriation
in the Budget year (b)
Departmental total
Total expenses for Outcome 1
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
21,839
7
21,186
-
21,419
-
21,226
-
21,322
-
4,416
4,125
3,494
3,253
2,984
26,262
25,311
24,913
24,479
24,306
26,262
25,311
24,913
24,479
24,306
6,915
5,511
5,824
5,779
5,922
735,363
9,000
751,278
758,055
763,566
759,551
765,375
786,984
792,763
803,903
809,825
21,839
7
21,186
-
21,419
-
21,226
-
21,322
-
4,416
4,125
3,494
3,253
2,984
26,262
777,540
25,311
788,877
24,913
790,288
24,479
817,242
24,306
834,131
2016–17
2017–18
128
136
Average staffing level (number)
(a) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act 2013.
(b) Expenses not requiring appropriation in the Budget year are made up of depreciation and amortisation
expenses, audit fees and gain from sale of fixed assets.
(c) Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an
increase in funds.
150
ARC Budget Statements
Performance criteria for Outcome 1
This section details the performance criteria for each program associated with
Outcome 1. It summarises how each program is delivered and where 2017–18 Budget
measures have created new programs or materially changed existing programs.
Outcome 1: Growth of knowledge and innovation through managing research
funding schemes, measuring research excellence and providing advice.
Program 1.1: Discovery—Research and Research Training
Objective
Through the Discovery program, the ARC aims to build Australia’s research
capacity by supporting excellent, internationally competitive research projects,
fellowships and awards.
This contributes to Outcome 1 by: providing training and career opportunities for
current and emerging researchers; fostering international engagement; and
encouraging research that will strengthen Australia’s capacity in areas of priority.
Delivery
The Discovery program is delivered through the following activities:


Purposes 38
administering the Discovery funding schemes—Australian Laureate
Fellowships, Discovery Early Career Researcher Award, Discovery
Indigenous, Discovery Projects and Future Fellowships—which provide
funding to eligible administering organisations for excellent, internationally
competitive research projects, fellowships and awards
informing policy on research and research training.
The ARC’s purpose is to grow knowledge and innovation for the benefit of the
Australian community through funding the highest quality research, assessing the
quality, engagement and impact of research and providing advice on research
matters.
Performance information 1.1 Discovery—Research and Research Training
Year
Performance criteria
Targets
2016–17
The Discovery program contributes to the
growth of knowledge and innovation in
Australia by funding excellent,
internationally competitive research
projects, fellowships and awards that:
Final data for targets will be
available at the end of 2016–17 and
compared against baseline data in
the ARC annual report. To date:




are relevant to Australia’s needs and
expectations
build Australia’s research capacity and
ability to respond to emerging
priorities
enhance international engagement
produce outcomes that improve our
understanding of the world and/or
provide economic, environmental,
social, health and/or cultural benefits
to Australia.



60% of Discovery research
projects, fellowships and
awards commencing in 2016–
17 address a Science and
Research priority area
93% of Discovery projects
commencing in 2016–17
support research training
and/or early career researchers
77% of Discovery projects
commencing in 2016–17
involve international
collaboration.
Case studies demonstrating the
benefits arising from Discovery
research will be provided in the
ARC annual report.
38
Refers to updated ARC purpose that will be reflected in the 2017–18 Corporate Plan.
151
ARC Budget Statements
Year
Performance criteria
Targets
2017–18
The Discovery program contributes to the
growth of knowledge and innovation in
Australia by funding:
Target: Maintain proportion of
Discovery program funding
allocated to support early career
researchers under the Discovery
Early Career Researcher Award
scheme.




excellent research and researchers
research training and career
development
international collaboration
research in areas of priority.
The Discovery program produces
outcomes that improve our fundamental
understanding of the world and/or provide
economic, environmental, social, health
and/or cultural benefits to Australia.
Target: Maintain or increase the
proportion of Discovery research
projects, fellowships and awards
that support international
collaboration.
Target: Maintain the proportion of
Discovery research projects,
fellowships and awards that involve
research in one of the Australian
Government’s Science and
Research Priority areas.
Target: Evidence of outcomes
arising from Discovery research
projects, fellowships and awards
improving our fundamental
understanding of the world and/or
providing economic, environmental,
social, health and/or cultural
benefits to Australia.
2018–19 and
beyond
As per 2017–18
As per 2017–18
152
ARC Budget Statements
Program 1.2: Linkage—Cross Sector Research Partnerships
Objective
Through the Linkage program, the ARC aims to build Australia’s research and
innovation capacity by supporting excellent, internationally competitive research
projects, infrastructure, hubs and centres that involve collaboration among
researchers within and beyond the research sector.
This contributes to Outcome 1 by: providing training and career opportunities for
current and emerging researchers; fostering industry and other end-user
engagement; supporting international collaboration; and encouraging research
that will strengthen Australia’s capacity in areas of priority.
Delivery
The Linkage program is delivered through the following activities:


Purposes 39
Administering the Linkage funding schemes—ARC Centres of Excellence,
Industrial Transformation Research Hubs, Industrial Transformation Training
Centres, Linkage Infrastructure, Equipment and Facilities, Linkage Learned
Academies Special Projects, Linkage Projects and Special Research
Initiatives—which provide funding to eligible administering organisations for
excellent, internationally competitive research projects, infrastructure, hubs
and centres
informing policy on cross sector research partnerships.
The ARC’s purpose is to grow knowledge and innovation for the benefit of the
Australian community through funding the highest quality research, assessing the
quality, engagement and impact of research and providing advice on research
matters.
Performance information 1.2 Linkage—Cross Sector Research Partnerships
Year
Performance criteria
Targets
2016–17
The Linkage program contributes to the
growth of knowledge and innovation in
Australia by funding excellent,
internationally competitive research
projects, infrastructure, hubs and centres
that:
Final reporting data for targets will
be available at the end of 2016–17
and compared against baseline data
in the ARC annual report. To date:





are relevant to Australia’s needs and
expectations
build Australia’s research capacity
and ability to respond to emerging
priorities
encourage collaboration among
researchers within and beyond the
research sector (particularly industry)
enhance international engagement
produce outcomes that improve our
understanding of the world and/or
provide economic, environmental,
social, health and/or cultural benefits
to Australia.





39
84% of Linkage research
projects, infrastructure, hubs
and centres commencing in
2016–17 address a Science
and Research priority area
64% of Linkage projects
commencing in 2016–17
support research training and
early career researchers
288 Linkage projects
commencing in 2016–17
involve 769 end-user partner
organisations (an average of
2.7 organisations per project)
53% of Linkage projects
commencing in 2016–17
support international
collaboration
results indicate the Linkage
Projects scheme is on track to
maintain level of stakeholder
satisfaction with the research
partnerships supported through
the Linkage program.
Refers to updated ARC purpose that will be reflected in the 2017–18 Corporate Plan.
153
ARC Budget Statements
Year
Performance criteria
Targets
Case studies demonstrating the
benefits arising from Linkage
research will be provided in the ARC
annual report.
2017–18
The Linkage program contributes to the
growth of knowledge and innovation in
Australia by funding:




excellent collaborative research and
researchers
industrial research training and career
development
partnerships between universities and
research end-users
research in areas of priority.
Target: Maintain proportion of
Linkage Program funding to support
industrial research training under
the Industrial Transformation
Training Centres scheme.
Target: Maintain or increase the
level of co-funding from partner
organisations under the Linkage
Projects scheme [≥$1 for every ARC
dollar].
Target: Maintain stakeholder
satisfaction with the research
partnerships supported through
Linkage research projects,
infrastructure, hubs and centres
[with baseline based on 4 year
rolling average].
Target: Maintain or increase the
proportion of Linkage research
projects, infrastructure, hubs and
centres that involve research in one
of the Australian Government’s
Science and Research Priority
areas.
Target: Linkage Projects scheme is
delivered efficiently [100% of
announcements are made within six
months of submission].
2018–19 and
beyond
The Linkage program produces outcomes
that provide economic, environmental,
social, health and/or cultural benefits to
Australia.
Target: Evidence of outcomes
arising from Linkage research
projects, infrastructure, hubs and
centres providing economic,
environmental, social, health and/or
cultural benefits to Australia.
As per 2017–18
As per 2017–18
154
ARC Budget Statements
Program 1.3: Excellence in Research for Australia
Objective
Through the Excellence in Research for Australia (ERA) program the ARC aims to
improve Australia’s research capacity by evaluating research at eligible Australian
higher education institutions against international benchmarks and identifying
excellence across the full spectrum of research activities. The program includes
both the research quality assessment framework, ERA, and an engagement and
impact assessment framework, which will assess the engagement of researchers
with end-users, and show how universities are translating their research into
economic, social, environmental and other impacts.
This contributes to Outcome 1 by: providing a unique, evidence-based resource to
inform Australian government research policy and the strategic direction of higher
education institutions; and encouraging researchers to produce high-quality and
impactful research with real world benefits.
Delivery
The program is delivered through the following activities:



Purposes 40
administering an evaluation framework to measure and report on the quality
of research conducted at Australia’s higher education institutions
developing a framework to assess engagement and show how universities
are translating their research into economic, social environmental and other
impacts
informing strategic policy advice on research quality, engagement and
impact.
The ARC’s purpose is to grow knowledge and innovation for the benefit of the
Australian community through funding the highest quality research, assessing the
quality, engagement and impact of research and providing advice on research
matters.
Performance information 1.3 Excellence in Research for Australia
Year
Performance criteria
Targets
2016–17
The ERA program, including the research
quality assessment framework and
development of the engagement and impact
assessment framework, contributes to the
growth of knowledge and innovation in
Australia by:
Final reporting information for
the following targets will be
reported in the ARC annual
report:



2017–18
The ERA program, including the research
quality assessment framework and the
engagement and impact assessment
framework, contributes to the growth of
knowledge and innovation in Australia by:

40
providing assurance of the quality of
research in Australia
encouraging excellent, internationally
competitive research
encouraging impactful engagement
within and beyond the research sector.
providing assurance of the quality of
research in Australia


ERA reports and activities
inform Australian
Government policy
ERA reports and activities
inform strategic planning at
eligible Australian higher
education institutions.
The target of improvements to
the research performance of
Australian higher education
institutions will not be measured
in 2016–17. The next ERA
evaluation will be conducted in
2018.
Target: The ERA program
delivers reports and activities
that inform Australian
Government policy.
Target: The ERA program
delivers reports and activities
that inform strategic planning at
Refers to updated ARC purpose that will be reflected in the 2017–18 Corporate Plan.
155
ARC Budget Statements
Year
Performance criteria
Targets

eligible Australian higher
education institutions.

encouraging excellent, internationally
competitive research
encouraging impactful engagement
within and beyond the research sector.
Target: Engagement within and
beyond the research sector is
benchmarked.
Target: Impact studies submitted
for the Engagement and Impact
assessment publicly
demonstrate how universities are
translating their research into
economic, social, environmental
and other impacts.
2018–19 and
beyond
As per 2017–18
As per 2017–18 and:
Target: Research performance
of Australian higher education
institutions improves.
156
ARC Budget Statements
Section 3: Budgeted financial statements
Section 3 presents budgeted financial statements which provide a comprehensive
snapshot of entity finances for the 2017–18 Budget year, including the impact of
Budget measures and resourcing on financial statements.
3.1
BUDGETED FINANCIAL STATEMENTS
3.1.1 Differences between entity resourcing and financial statements
There are no material variances between the entity resources table and the budgeted
financial statements.
3.1.2 Explanatory notes and analysis of budgeted financial statements
The budgeted financial statements have been updated to reflect changes and other
variations since the 2016–17 Portfolio Budget Statements (PBS). No major changes to
the ARC’s funding has occurred since the 2016–17 PBS.
Budgeted departmental comprehensive income statement
The department’s income statement reflects a deficit across the forward estimates.
These deficits are solely attributable to the depreciation expense for the year. Expenses
for 2017–18 are estimated to be $25.3 million.
Budgeted departmental balance sheet
The budgeted net asset position of $20.1 million for 2017–18 represents a decrease of
$2.1 million. This is mainly attributable to the estimated decrease in non-financial
assets resulting from the estimated depreciation applied to the assets for the financial
year.
Schedule of budgeted income and expenses administered on behalf of
Government
The schedule of budgeted income and expenses reflects the revenues and expense
relating to programs administered by the ARC on behalf of Government.
The majority of the expenditure is on Grants as provided under the National
Competitive Grants Scheme. Expenditure on Grants is estimated to increase steadily
over the forward estimates.
Schedules of budgeted assets and liabilities administered on behalf of
government
The ARC recognises grant liabilities to the extent that the grant eligibility criteria or
reporting requirements have been satisfied. The closing liability reflects the remaining
commitment, as at 30 June, for the relevant calendar year.
157
ARC Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS TABLES
Table 3.1: Comprehensive income statement (showing net cost of services) for
the period ended 30 June
2016–17
Estimated
actual
$'000
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Finance costs
Total expenses
LESS:
OWN-SOURCE INCOME
Sale of goods and rendering of
services
Total own-source revenue
Gains
Sale of assets
Other
Total gains
Total own-source income
Net (cost of)/contribution by services
Revenue from Government
Surplus/(deficit) attributable to the
Australian Government
Total comprehensive income/(loss)
Total comprehensive income/(loss)
attributable to the Australian Government
Total comprehensive income/(loss) - as
per the statement of comprehensive
income
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
15,454
6,196
4,319
293
26,262
16,573
4,417
4,057
264
25,311
16,900
4,346
3,426
241
24,913
17,221
3,883
3,185
190
24,479
17,557
3,671
2,916
162
24,306
7
-
-
-
-
7
-
-
-
-
29
68
97
68
68
68
68
68
68
68
68
104
(26,158)
68
(25,243)
68
(24,845)
68
(24,411)
68
(24,238)
21,839
(4,319)
21,186
(4,057)
21,419
(3,426)
21,226
(3,185)
21,322
(2,916)
(4,319)
(4,319)
(4,057)
(4,057)
(3,426)
(3,426)
(3,185)
(3,185)
(2,916)
(2,916)
2017–18
$'000
2018–19
$'000
2019–20
$'000
2020–21
$'000
Note: Impact of net cash appropriation arrangements
2016–17
$'000
Total comprehensive income/(loss)
excluding depreciation/amortisation
expenses previously funded through
revenue appropriations
less depreciation/amortisation expenses
previously funded through revenue
appropriations (a)
2017–18
Budget
-
-
-
-
4,319
4,057
3,426
3,185
2,916
(4,319)
(4,057)
(3,426)
(3,185)
(2,916)
Prepared on Australian Accounting Standards basis.
(a) From 2010–11, the Government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities
(and select corporate Commonwealth entities) were replaced with a separate capital budget (the
Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information
regarding DCBs, please refer to Table 3.5 Departmental Capital Budget Statement.
158
ARC Budget Statements
Table 3.2: Budgeted departmental balance sheet (as at 30 June)
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
305
14,111
305
14,157
305
14,204
305
14,299
305
14,351
Total financial assets
14,416
14,462
14,509
14,604
14,656
Non-financial assets
Land and buildings
Property, plant and equipment
Intangibles
Other non-financial assets
1,695
853
12,865
275
1,560
629
11,076
275
1,417
355
9,294
275
1,265
190
7,654
275
1,110
112
6,205
275
Total non-financial assets
15,688
13,540
11,341
9,384
7,702
Total assets
30,104
28,002
25,850
23,988
22,358
415
415
415
415
415
415
415
415
415
415
3,026
3,026
3,026
3,026
3,026
3,026
3,026
3,026
3,026
3,026
4,080
334
4,126
334
4,173
334
4,268
334
4,320
334
4,414
4,460
4,507
4,602
4,654
8,043
15,945
8,095
14,263
38,738
43
(22,836)
15,945
15,945
39,972
43
(25,752)
14,263
14,263
LIABILITIES
Payables
Suppliers
Total payables
Interest bearing liabilities
Leases
Total interest bearing liabilities
Provisions
Employee provisions
Other provisions
Total provisions
Total liabilities
7,855
7,901
7,948
Net assets
22,249
20,101
17,902
EQUITY*
Parent entity interest
Contributed equity
34,374
36,283
37,510
Reserves
43
43
43
Retained surplus (accumulated deficit)
(12,168)
(16,225)
(19,651)
Total parent entity interest
22,249
20,101
17,902
Total equity
22,249
20,101
17,902
Prepared on Australian Accounting Standards basis.
*
Equity is the residual interest in assets after the deduction of liabilities.
159
ARC Budget Statements
Table 3.3: Departmental statement of changes in equity — summary of
movement (Budget year 2017–18)
Retained
earnings
$'000
Opening balance as at 1 July 2017
Balance carried forward from previous
(12,168)
period
Comprehensive income
Surplus/(deficit) for the period
(4,057)
Total comprehensive income
(4,057)
of which:
Attributable to the Australian Government
(4,057)
Transactions with owners
Contributions by owners
Equity injection - Appropriation
Departmental capital budget (DCB)
Sub-total transactions with owners
Estimated closing balance as at 30 June
(16,225)
2018
Closing balance attributable to the
(16,225)
Australian Government
Prepared on Australian Accounting Standards basis.
160
Asset
revaluation
reserve
$'000
Other Contributed
reserves
equity/
capital
$'000
$'000
Total
equity
$'000
43
-
34,374
22,249
-
-
-
(4,057)
(4,057)
-
-
-
(4,057)
-
-
674
1,235
1,909
674
1,235
1,909
43
-
36,283
20,101
43
-
36,283
20,101
ARC Budget Statements
Table 3.4: Budgeted departmental statement of cash flows (for the period ended
30 June)
2016–17
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
Sale of goods and rendering of
services
Net GST received
Total cash received
Cash used
Employees
Suppliers
Net GST paid
Other
Total cash used
Net cash from/(used by) operating
activities
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property,
plant and equipment
Total cash received
Cash used
Purchase of property, plant and
equipment and intangibles
Total cash used
Net cash from/(used by) investing
activities
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
Net cash from/(used by) financing
activities
Net increase/(decrease) in cash held
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
22,101
21,140
21,372
21,131
21,270
7
-
-
-
-
550
22,658
550
21,690
550
21,922
550
21,681
550
21,820
15,412
6,128
550
293
22,383
16,200
4,676
550
264
21,690
16,336
4,795
550
241
21,922
16,498
4,443
550
190
21,681
17,271
3,837
550
162
21,820
275
-
-
-
-
29
-
-
-
-
29
-
-
-
-
5,091
1,909
1,227
1,228
1,234
5,091
1,909
1,227
1,228
1,234
(5,062)
(1,909)
(1,227)
(1,228)
(1,234)
4,787
4,787
1,909
1,909
1,227
1,227
1,228
1,228
1,234
1,234
4,787
1,909
1,227
1,228
1,234
-
-
-
-
-
305
305
305
305
305
305
305
305
Cash and cash equivalents at the
305
beginning of the reporting period
Cash and cash equivalents at the end
305
of the reporting period
Prepared on Australian Accounting Standards basis.
161
ARC Budget Statements
Table 3.5: Departmental capital budget statement (for the period ended 30 June)
2016–17
Estimated
actual
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Equity injections - Bill 2
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
1,251
3,536
1,235
674
1,227
-
1,228
-
1,234
-
4,787
1,909
1,227
1,228
1,234
4,787
4,787
1,909
1,909
1,227
1,227
1,228
1,228
1,234
1,234
PURCHASE OF NON-FINANCIAL ASSETS
Funded by capital appropriations (a)
Funded Internally by departmental resources
3,536
674
-
-
-
304
-
-
-
-
Funded by capital appropriation - DCB (b)
1,251
1,235
1,227
1,228
1,234
TOTAL
RECONCILIATION OF CASH USED TO
ACQUIRE ASSETS TO ASSET MOVEMENT
TABLE
5,091
1,909
1,227
1,228
1,234
Total purchases
5,091
1,909
1,227
1,228
1,234
Total cash used to acquire assets
5,091
1,909
1,227
1,228
1,234
Total new capital appropriations
Provided for:
Purchase of non-financial assets
Total items
Prepared on Australian Accounting Standards basis.
(a) Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.
(b) Includes purchases from current and previous years' Departmental Capital Budgets (DCBs).
162
ARC Budget Statements
Table 3.6: Statement of asset movements (Budget year 2017–18)
Buildings
$'000
Other property,
plant and
equipment
$'000
Computer
software and
intangibles
$'000
Total
$'000
As at 1 July 2017
Gross book value
2,925
1,669
37,548
42,142
Accumulated depreciation/amortisation
and impairment
(1,230)
(816)
(24,683)
(26,729)
Opening net book balance
1,695
853
12,865
15,413
Capital asset additions
Estimated expenditure on new or
replacement assets
By purchase - appropriation equity (a)
674
674
By purchase - appropriation ordinary
annual services (b)
100
150
985
1,235
Total additions
100
150
1,659
1,909
Other movements
Depreciation/amortisation expense
(235)
(374)
(3,448)
(4,057)
Total other movements
(235)
(374)
(3,448)
(4,057)
As at 30 June 2018
Gross book value
3,025
1,819
39,207
44,051
Accumulated depreciation/ amortisation
and impairment
(1,465)
(1,190)
(28,131)
(30,786)
Closing net book balance
1,560
629
11,076
13,265
Prepared on Australian Accounting Standards basis.
(a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill
(No. 2) 2017–18, including CDABs.
(b) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No. 1)
2017–18 for depreciation/amortisation expenses, DCBs or other operational expenses.
163
ARC Budget Statements
Table 3.7: Schedule of budgeted income and expenses administered on behalf of
Government (for the period ended 30 June)
EXPENSES
Suppliers
Grants
Total expenses administered on behalf of
Government
LESS:
OWN-SOURCE INCOME
Non-taxation revenue
Recovery of prior year grant
payments (a)
Total non-taxation revenue
2016–17
Estimated
actual
$'000
2017–18
Budget
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
15,915
735,363
5,511
758,055
5,824
759,551
5,779
786,984
5,922
803,903
751,278
763,566
765,375
792,763
809,825
7,000
7,000
7,000
7,000
7,000
7,000
7,000
7,000
7,000
7,000
$'000
Total own-sourced income
7,000
7,000
7,000
7,000
7,000
administered on behalf of
Government
Total comprehensive income/(loss)
(744,278)
(756,566)
(758,375)
(785,763)
(802,825)
Prepared on Australian Accounting Standards basis.
(a) Under the Australian Research Council Act 2001, grant recipients are required to return unspent grant
money to the ARC unless otherwise approved. ARC then returns the funding relating to prior financial
years back to the OPA.
164
ARC Budget Statements
Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of
Government (as at 30 June)
2016–17
Estimated
actual
$'000
ASSETS
Financial assets
Taxation receivables
485
Total financial assets
485
Non-financial assets
Other non-financial assets
12
Total non-financial assets
12
Total assets administered on behalf of
497
Government
LIABILITIES
Payables
Suppliers
88
Grants
296,908
Total payables
296,996
Total liabilities administered on behalf
296,996
of Government
Net assets/(liabilities)
(296,499)
Prepared on Australian Accounting Standards basis.
165
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
485
485
485
485
485
485
485
485
12
12
12
12
12
12
12
12
497
497
497
497
88
296,908
296,996
88
296,908
296,996
88
296,908
296,996
88
296,908
296,996
296,996
296,996
296,996
296,996
(296,499)
(296,499)
(296,499)
(296,499)
ARC Budget Statements
Table 3.9: Schedule of budgeted administered cash flows (for the period ended
30 June)
2016–17
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Other
Total cash received
Cash used
Grant
Suppliers
Cash to the Official Public Account
Total cash used
Net cash from/(used by) operating
activities
Net increase/(decrease) in cash held
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
7,000
7,000
7,000
7,000
7,000
7,000
7,000
7,000
7,000
7,000
735,363
15,915
12,300
763,578
758,055
5,511
12,300
775,866
759,551
5,824
12,300
777,675
786,984
5,779
12,300
805,063
803,903
5,923
12,300
822,126
(756,578)
(768,866)
(770,675)
(798,063)
(815,126)
(756,578)
(768,866)
(770,675)
(798,063)
(815,126)
-
-
-
-
763,566
5,300
765,375
5,300
792,763
5,300
809,826
5,300
768,866
770,675
798,063
815,126
-
-
-
-
Cash and cash equivalents at beginning
of reporting period
Cash from Official Public Account for:
- Appropriations
751,278
- GST Increase to Appropriations
5,300
Total cash from Official Public
756,578
Account
Cash and cash equivalents at end of
reporting period
Prepared on Australian Accounting Standards basis.
Table 3.10: Administered capital budget statement (for the period ended 30 June)
ARC does not have any administered capital budget, therefore table 3.10 is not
presented.
Table 3.11: Statement of administered asset movements (Budget year 2017–18)
ARC does not have any administered assets, therefore table 3.11 is not presented.
166
AUSTRALIAN SKILLS QUALITY
AUTHORITY
ENTITY RESOURCES AND PLANNED
PERFORMANCE
167
AUSTRALIAN SKILLS QUALITY AUTHORITY
SECTION 1: OVERVIEW AND RESOURCES ................................................................. 190
1.1
Strategic direction statement ........................................................................ 190
1.2
Entity resource statement ............................................................................. 192
1.3
Budget measures .......................................................................................... 193
SECTION 2: OUTCOMES AND PLANNED PERFORMANCE...................................... 194
2.1
Budgeted expenses and performance for Outcome 1 .................................. 195
SECTION 3: BUDGETED FINANCIAL STATEMENTS ................................................. 199
3.1
Budgeted financial statements...................................................................... 199
3.2
Budgeted financial statements tables ........................................................... 201
189
AUSTRALIAN SKILLS QUALITY AUTHORITY
Section 1: Overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
The Australian Skills Quality Authority (ASQA) was established on 1 July 2011 by the
enactment of the National Vocational Education and Training Regulator Act 2011 (NVR
Act) and supplementary legislation.
ASQA’s focus is on maintaining a nationally consistent regulatory system that gives
confidence to stakeholders that vocational education and training providers, and
providers of English language courses to overseas students, offer quality training and
assessment services. ASQA works to ensure that this training is appropriate to meet
Australia’s social and economic needs for a highly educated and skilled population.
Key facets of ASQA’s regulatory approach include:

targeted, risk-based regulation

decisive action in cases of serious risk to the vocational education and training
(VET) sector

facilitating access to accurate information about VET.
ASQA’s objectives (as described in the NVR Act) are:

to provide for national consistency in the regulation of VET

to regulate VET using:
- a standards-based quality framework
- risk assessments, where appropriate

to protect and enhance:
- quality, flexibility and innovation in VET
- Australia’s reputation for VET nationally and internationally

to provide a regulatory framework that encourages and promotes a VET system
that is appropriate to meet Australia’s social and economic needs for a highly
educated and skilled population

to protect students undertaking, or proposing to undertake, Australian VET by
ensuring the provision of quality vocational education and training

to facilitate access to accurate information relating to the quality of VET.
190
ASQA Budget Statements
ASQA’s priorities for the year ahead
In 2017–18 ASQA will focus on:

fully implementing its student-centred audit model

closely monitoring developments in the international training market

undertaking consultation for a new fees/charges model aimed at incentivising
provider compliance and implementing the new model

finalising the regulatory work emanating from ASQA’s strategic review of
VET-FEE-HELP program providers of concern

action to address issues identified in ASQA’s Strategic Review on Course
Duration

full implementation of information systems designed to streamline registered
training organisations applications.
191
ASQA Budget Statements
1.2
ENTITY RESOURCE STATEMENT
Table 1.1 shows the total funding from all sources available to ASQA for its operations
and to deliver programs and services on behalf of the Government.
The table summarises how resources will be applied by outcome (government strategic
policy objectives) and by administered (on behalf of the Government or the public) and
departmental (for ASQA’s operations) classification.
For more detailed information on special appropriations, please refer to Budget Paper
No. 4 – Agency Resourcing.
Information in this table is presented on a resourcing (that is, appropriations/cash
available) basis, while the ‘Budgeted expenses by Outcome’ table in Section 2 and the
financial statements in Section 3 are presented on an accrual basis.
Table 1.1: ASQA resource statement — Budget estimates for 2017–18 as at
Budget May 2017
2016–17
Estimated
actual
$'000
Departmental
Annual appropriations - ordinary annual services (a)
Prior year appropriations available
Departmental appropriation (b)
s74 retained revenue receipts (c)
Annual appropriations - other services - non-operating (d)
Prior year appropriations available
Equity injection
Total departmental annual appropriations
Total departmental resourcing
Administered
Total administered special appropriations (e)
Total administered resourcing
Total resourcing for ASQA
2017–18
Estimate
$'000
22,077
35,250
270
13,706
33,099
264
831
102
58,530
58,530
478
47,547
47,547
396
396
58,926
354
354
47,901
2016–17
2017–18
Average staffing level (number)
197
184
Prepared on a resourcing (i.e. appropriations available) basis.
Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow
statement.
(a) Appropriation Bill (No. 1) 2017–18.
(b) Excludes departmental capital budget (DCB).
(c) Estimated retained revenue receipts under section 74 of the PGPA Act.
(d) Appropriation Bill (No. 2) 2017–18.
(e) Special appropriation under section 77 of the PGPA Act.
192
ASQA Budget Statements
1.3
BUDGET MEASURES
Budget measures in Part 1 relating to ASQA are detailed in Budget Paper No. 2 and are
summarised below.
Table 1.2: ASQA 2017–18 Budget measures
Part 1: Measures announced since the 2016–17 Mid-Year Economic and Fiscal Outlook
(MYEFO)
Program
2016–17
$'000
2017–18
$'000
2018–19
$'000
2019–20
$'000
2020–21
$'000
Revenue measures
Australian Skills Quality Authority establishment of registration levy
1.1
Administered revenues
Total
Total revenue measures
Administered
Total
Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a
decrease in funds and a positive (+) represent an increase in funds.
193
ASQA Budget Statements
Section 2: Outcomes and planned performance
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programs are the
primary vehicle by which government entities achieve the intended results of their
outcome statements. Entities are required to identify the programs which contribute to
government outcomes over the Budget and forward years.
Each outcome is described below together with its related programs. The following
provides detailed information on expenses for each outcome and program, further
broken down by funding source.
Note:
Performance reporting requirements in the Portfolio Budget Statements are part of the
enhanced Commonwealth performance framework established by the Public
Governance, Performance and Accountability Act 2013. It is anticipated that the
performance criteria described in Portfolio Budget Statements will be read with
broader information provided in an entity’s corporate plans and annual performance
statements—included in Annual Reports—to provide an entity’s complete
performance story.
The most recent corporate plan for ASQA can be found at: www.asqa.gov.au
The most recent annual performance statement can be found in the Annual Report at:
www.asqa.gov.au
194
ASQA Budget Statements
2.1
BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1
Outcome 1: Contribute to a high quality vocational education and training
sector, including through streamlined and nationally consistent regulation of
training providers and courses, and the communication of advice to the sector
on improvements to the quality of vocational education and training.
Budgeted expenses for Outcome 1
This table shows how much ASQA intends to spend (on an accrual basis) on achieving
the outcome, broken down by program, as well as by administered and departmental
funding sources.
Table 2.1.1: Budgeted expenses for Outcome 1
Outcome 1: Contribute to a high quality vocational education and training sector, including through
streamlined and nationally consistent regulation of training providers and courses, and the
communication of advice to the sector on improvements to the quality of vocational education and
training.
2016–17
2017–18
2018–19
2019–20
2020–21
Estimated
Budget
Forward
Forward
Forward
actual
estimate
estimate
estimate
$'000
$'000
$'000
$'000
$'000
Program 1.1: Regulation and advice
Administered expenses
Expenses not requiring
appropriation in the Budget
year (a)
Administered total
Departmental expenses
Departmental appropriation
s74 Retained revenue
receipts (b)
Expenses not requiring
appropriation in the Budget
year (a)
Departmental total
Total expenses for
program 1.1
Outcome 1 Totals by appropriation type
Administered expenses
Expenses not requiring
appropriation in the Budget
year (a)
Administered total
350
-
-
-
-
350
-
-
-
-
35,250
33,099
32,887
33,591
33,200
270
264
264
264
132
5,056
2,158
2,435
2,493
2,658
40,576
35,521
35,586
36,348
35,990
40,926
35,521
35,586
36,348
35,990
350
-
-
-
-
350
-
-
-
-
195
ASQA Budget Statements
Table 2.1.1: Budgeted expenses for Outcome 1 (continued)
2016–17
Estimated
actual
$'000
Departmental expenses
Departmental appropriation
s74 Retained revenue
receipts (b)
Expenses not requiring
appropriation in the Budget
year (a)
Departmental total
Total expenses for Outcome 1
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
35,250
33,099
32,887
33,591
33,200
270
264
264
264
132
5,056
2,158
2,435
2,493
2,658
40,576
40,926
35,521
35,521
35,586
35,586
36,348
36,348
35,990
35,990
2016–17
2017–18
Average staffing level (number)
197
184
(a) Administered expenses not requiring appropriation are doubtful debts. Departmental expenses not
requiring appropriation are depreciation, amortisation, and expenses funded by prior years'
appropriations.
(b) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act 2013.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the budget year as government priorities change.
196
ASQA Budget Statements
Performance criteria for Outcome 1
This section below details the performance criteria for each program associated with
Outcome 1. It summarises how each program is delivered.
Outcome 1: Contribute to a high quality vocational education and training
sector, including through streamlined and nationally consistent regulation of
training providers and courses, and the communication of advice to the sector
on improvements to the quality of vocational education and training.
Program 1.1: Regulation and Advice
Objective
To assure the quality of VET outcomes through national regulation and the
communication of advice on vocational education and training.
Delivery
The mechanisms through which Program 1.1 will be delivered are:




Purposes 41
applying a risk based and standards based regulatory approach to the VET
sector
taking regulatory action where necessary to remove poor quality providers
from the sector
making ASQA’s Regulatory Strategy and Regulatory Risk Framework
publically available
undertaking communications campaigns to address identified issues and
providing stakeholders with timely and accurate advice.
Program 1.1 contributes to ASQA’s purposes which are to:



protect the quality and reputation of the vocational education training (VET)
sector
regulate the VET sector utilising a contemporary, risk and standards based
regulatory approach
facilitate access to accurate information about VET.
Performance information 1.1 Regulation and Advice
Year
Performance criteria
Targets
2016–17
ASQA is compliant with the National
Regulator Standards.
Application of risk based
regulation demonstrated by
percentage of non-application
based audits to application
based audits.
Expected achievement against criterion:
ASQA will provide a qualitative evaluation of
its compliance with national standards in its
Annual Report for 2016–17.
Providers report that ASQA’s information
systems and service channels are accurate,
helpful and timely
Expected achievement against criterion:
ASQA will conduct a survey to assess
provider satisfaction.
41
Target: 30% non-application
based audits.
Development of tools and
processes to build the regulated
community’s understanding of
the requirements for compliance.
Target: 70% RTO satisfaction
with information relating to
regulatory changes.
Refers to updated purposes that will be reflected in ASQA’s 2017–18 Corporate Plan.
197
ASQA Budget Statements
Year
Performance criteria
Targets
2017–18
ASQA undertakes audits of providers.
Application of risk based
regulation demonstrated by
percentage of non-application
based audits to application
based audits.
Measuring achievement against criterion:
ASQA will provide trend analysis as well as a
qualitative evaluation of its audit activity in its
Annual Report for 2017–18.
Stakeholders indicate they believe ASQA is
improving the quality of VET outcomes in
Australia.
Measuring achievement against criterion:
2018–19 and
beyond
Target: 30% non-application
based audits.
ASQA will conduct a survey to assess
provider satisfaction.
Providers and stakeholders
indicate they are satisfied with
ASQA’s engagement with the
regulated community.
Target: 70% positive feedback
from providers and stakeholders
(excellent or good in annual
survey).
As per 2017–18
As per 2017–18
198
ASQA Budget Statements
Section 3: Budgeted financial statements
Section 3 presents budgeted financial statements which provide a comprehensive
snapshot of ASQA’s finances for the 2017–18 Budget year, including the impact of
Budget measures and resourcing on financial statements.
3.1
BUDGETED FINANCIAL STATEMENTS
3.1.1 Differences between entity resourcing and financial statements
There are no material variances between the resources table and the budgeted financial
statements.
3.1.2 Explanatory notes and analysis of budgeted financial statements
An analysis of ASQA’s budgeted financial statements for 2017–18 is provided below.
Budget departmental comprehensive income statement
ASQA is budgeting for an operating loss in 2017–18 reflecting the value of unfunded
depreciation and amortisation expense of $2.2 million.
Total expenses excluding depreciation are estimated to be $33.4 million in 2017–18.
This is $5.5 million less than the estimate for 2016–17. The decrease in expenditure
reflects the efficiencies ASQA has achieved through the Government approved VET
Regulatory Reforms that were factored into ASQA’s budget at the 2014–15 Portfolio
Additional Estimates Statements (PAES).
Under Government’s VET Regulatory Reforms, announced in the 2014–15 MYEFO,
ASQA received additional funding and a staffing increase for a transition period that
ends in 2016–17.
ASQA’s depreciation expenses are forecast to increase progressively over the Budget
and forward estimates. This reflects capital costs of improvements to ASQA’s IT
regulatory management system and property fit out.
Total assets at the end of 2017–18 are estimated to be $28.2 million. This is $2.0 million
lower than the estimated actual for 2016–17. This is due to a reduction in financial
assets.
Total liabilities at the end of 2017–18 are estimated to be $9.8 million. The largest
category of liabilities is $6.0 million for accrued employee entitlements.
Capital acquisitions in 2017–18 are $3.3 million, including property fit out costs and
enhancement of ASQA’s IT regulatory management systems.
199
ASQA Budget Statements
Administered
Revenue estimates for 2017–18 are $17.9 million which is $6.8 million lower than the
estimated revenue for 2016–17. The VET Regulatory Reforms included in the
2014–15 PAES acknowledged that ASQA would remain a partial cost recovery agency
at approximately 50 per cent of the cost of ASQA’s operation. This is reflected in the
forward estimates of the administered revenue profile.
Budgeted assets and liabilities represent net receivables and provisions for refunds of
administered receipts.
200
ASQA Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS TABLES
Table 3.1: Comprehensive income statement (showing net cost of services) for
the period ended 30 June
2016–17
Estimated
actual
$'000
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Total expenses
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of
services
Total own-source revenue
Total own-source income
Net cost of services
Revenue from Government
Surplus/(deficit) attributable to the
Australian Government
Total comprehensive income/(loss)
Total comprehensive income/(loss)
attributable to the Australian
Government
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
24,306
14,551
1,719
40,576
20,583
12,780
2,158
35,521
20,470
12,681
2,435
35,586
20,481
13,374
2,493
36,348
21,382
11,950
2,658
35,990
270
264
264
264
132
270
270
(40,306)
35,250
264
264
(35,257)
33,099
264
264
(35,322)
32,887
264
264
(36,084)
33,591
132
132
(35,858)
33,200
(5,056)
(5,056)
(2,158)
(2,158)
(2,435)
(2,435)
(2,493)
(2,493)
(2,658)
(2,658)
(5,056)
(2,158)
(2,435)
(2,493)
(2,658)
Note: Impact of net cash appropriation arrangements
2016–17
2017–18
2018–19
2019–20
2020–21
$'000
$'000
$'000
$'000
$'000
Total comprehensive income/(loss)
excluding depreciation/
amortisation expenses previously
funded through revenue
appropriations
(3,337)
less depreciation/amortisation
expenses previously funded through
revenue appropriations (a)
1,719
2,158
2,435
2,493
2,658
Total comprehensive income/(loss)
- as per the statement of
(5,056)
(2,158)
(2,435)
(2,493)
(2,658)
comprehensive income
Prepared on Australian Accounting Standards basis.
(a) From 2010–11, the Government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities
(and select corporate Commonwealth entities) were replaced with a separate capital budget (the
Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information
regarding DCBs, please refer to Table 3.5 Departmental Capital Budget Statement.
201
ASQA Budget Statements
Table 3.2: Budgeted departmental balance sheet (as at 30 June)
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
ASSETS
Financial assets
Cash and cash equivalents
292
292
292
Trade and other receivables
15,468
12,318
12,318
Total financial assets
15,760
12,610
12,610
Non-financial assets
Land and buildings
4,700
5,572
4,625
Property, plant and equipment
696
504
315
Intangibles
8,986
9,448
9,360
Other non-financial assets
54
54
54
Total non-financial assets
14,436
15,578
14,354
Assets held for sale
Total assets
30,196
28,188
26,964
LIABILITIES
Payables
Suppliers
3,737
3,237
3,234
Other payables
191
191
191
Total payables
3,928
3,428
3,425
Provisions
Employee provisions
5,852
6,021
6,021
Other provisions
298
301
304
Total provisions
6,150
6,322
6,325
Total liabilities
10,078
9,750
9,750
Net assets
20,118
18,438
17,214
EQUITY*
Parent entity interest
Contributed equity
24,223
24,701
25,912
Reserves
20
20
20
Retained surplus (accumulated
(4,125)
(6,283)
(8,718)
deficit)
Total parent entity interest
20,118
18,438
17,214
Total equity
20,118
18,438
17,214
Prepared on Australian Accounting Standards basis.
*
Equity is the residual interest in assets after the deduction of liabilities.
202
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
292
12,318
12,610
292
12,318
12,610
3,861
139
9,018
54
13,072
25,682
3,097
8,481
54
11,632
24,242
3,398
191
3,589
3,398
191
3,589
6,021
140
6,161
9,750
15,932
6,021
140
6,161
9,750
14,492
27,123
20
28,341
20
(11,211)
(13,869)
15,932
15,932
14,492
14,492
ASQA Budget Statements
Table 3.3: Departmental statement of changes in equity — summary of
movement (Budget year 2017–18)
Retained
earnings
$'000
Opening balance as at 1 July 2017
Balance carried forward from
previous period
Comprehensive income
Deficit for the period
Total comprehensive income
of which:
Attributable to the Australian
Government
Transactions with owners
Asset
revaluation
reserve
$'000
Contributed
equity/
capital
$'000
Total
equity
$'000
(4,125)
20
24,223
20,118
(2,158)
(6,283)
20
24,223
(2,158)
17,960
(6,283)
20
24,223
17,960
Equity injection - Appropriation
Sub-total transactions with
owners
Estimated closing balance as at
(6,283)
30 June 2018
Closing balance attributable to
(6,283)
the Australian Government
Prepared on Australian Accounting Standards basis.
-
478
478
-
478
478
20
24,701
18,438
20
24,701
18,438
Contributions by owners
203
ASQA Budget Statements
Table 3.4: Budgeted departmental statement of cash flows (for the period ended
30 June)
2016–17
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
44,182
Sale of goods and rendering of
270
services
Total cash received
44,452
Cash used
Employees
24,306
Suppliers
14,690
Total cash used
38,996
Net cash from/(used by)
5,456
operating activities
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and
5,558
equipment and intangibles
Total cash used
5,558
Net cash from/(used by)
(5,558)
investing activities
FINANCING ACTIVITIES
Cash received
Contributed equity
102
Total cash received
102
Net cash from/(used by)
102
financing activities
Net increase/(decrease) in cash
held
Cash and cash equivalents at the
292
beginning of the reporting period
Cash and cash equivalents at
292
the end of the reporting period
Prepared on Australian Accounting Standards basis.
204
2017–18
Budget
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
36,249
32,887
33,591
33,200
264
264
264
132
36,513
33,151
33,855
33,332
20,414
13,277
33,691
20,470
12,681
33,151
20,481
13,374
33,855
21,382
11,950
33,332
2,822
-
-
-
3,300
1,211
1,211
1,218
3,300
1,211
1,211
1,218
(3,300)
(1,211)
(1,211)
(1,218)
478
478
1,211
1,211
1,211
1,211
1,218
1,218
478
1,211
1,211
1,218
$'000
-
-
-
-
292
292
292
292
292
292
292
292
ASQA Budget Statements
Table 3.5: Departmental capital budget statement (for the period ended 30 June)
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Equity injections - Bill 2
Total new capital appropriations
-
-
1,211
1,211
1,218
102
478
-
-
-
102
478
1,211
1,211
1,218
102
478
1,211
1,211
1,218
102
478
1,211
1,211
1,218
933
478
1,211
1,211
1,218
4,625
2,822
-
-
-
5,558
3,300
1,211
1,211
1,218
5,558
3,300
1,211
1,211
1,218
5,558
3,300
1,211
1,211
1,218
Provided for:
Purchase of non-financial assets
Total items
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriations (a)
Funded internally from departmental
resources (b)
TOTAL
RECONCILIATION OF CASH USED
TO ACQUIRE ASSETS TO ASSET
MOVEMENT TABLE
Total purchases
Total cash used to acquire assets
Prepared on Australian Accounting Standards basis.
(a) Includes both current Bill 2 and prior Act 2 appropriations.
(b) Includes the following sources of funding:
- current Bill 1 and prior year Act 1 appropriations (excluding amounts from the DCB)
- s 74 Retained revenue receipts
- internally developed assets.
205
ASQA Budget Statements
Table 3.6: Statement of asset movements (Budget year 2017–18)
Buildings
$'000
As at 1 July 2017
Gross book value
Accumulated depreciation/
amortisation and impairment
Opening net book balance
Capital asset additions
Estimated expenditure on new
or replacement assets
By purchase - appropriation equity (a)
By purchase - appropriation ordinary
annual services (b)
Total additions
Other movements
Depreciation/amortisation expense
Total other movements
As at 30 June 2018
Gross book value
Accumulated depreciation/
amortisation and impairment
Closing net book balance
6,428
(1,728)
4,700
Other
property,
plant and
equipment
$'000
1,130
(434)
696
Computer
software and
intangibles
Total
$'000
$'000
14,770
22,328
(5,784)
8,986
(7,946)
14,382
-
-
478
478
1,850
1,850
-
972
1,450
2,822
3,300
(978)
(978)
8,278
(2,706)
5,572
(192)
(192)
1,130
(626)
504
(988)
(988)
(2,158)
(2,158)
16,220
25,628
(6,772)
9,448
(10,104)
15,524
Prepared on Australian Accounting Standards basis.
(a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill
(No. 2) 2017–18.
(b) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No. 1)
2017–18 for depreciation/amortisation expenses, DCBs or other operational expenses.
206
ASQA Budget Statements
Table 3.7: Schedule of budgeted income and expenses administered on behalf of
Government (for the period ended 30 June)
2016–17
Estimated
actual
$'000
EXPENSES
Write-down and impairment of assets
Total expenses administered on
behalf of Government
LESS:
OWN-SOURCE INCOME
Own-source revenue
Taxation revenue
Other taxes
Total taxation revenue
Non-taxation revenue
Fees and fines
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
350
-
-
-
-
350
-
-
-
-
-
9,600
9,600
9,600
9,600
-
9,600
9,600
9,600
9,600
25,094
8,333
8,455
8,455
8,455
Total non-taxation revenue
25,094
Total own-source revenue
25,094
administered on behalf of
Government
Total own-sourced income
25,094
administered on behalf of
Government
24,744
Net contribution by services
Total comprehensive income
24,744
Prepared on Australian Accounting Standards basis.
8,333
8,455
8,455
8,455
17,933
18,055
18,055
18,055
17,933
18,055
18,055
18,055
17,933
17,933
18,055
18,055
18,055
18,055
18,055
18,055
207
ASQA Budget Statements
Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of
Government (as at 30 June)
2016–17
Estimated
actual
$'000
ASSETS
Financial assets
Trade and other receivables
69
Total financial assets
69
Total assets administered on
69
behalf of Government
LIABILITIES
Provisions
Other provisions
24
Total provisions
24
Total liabilities administered on
24
behalf of Government
Net assets/(liabilities)
45
Prepared on Australian Accounting Standards basis.
208
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
69
69
69
69
69
69
69
69
69
69
69
69
24
24
24
24
24
24
24
24
24
24
24
24
45
45
45
45
ASQA Budget Statements
Table 3.9: Schedule of budgeted administered cash flows (for the period ended
30 June)
2016–17
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Sales of goods and rendering of
24,870
services
Taxes
Fines
270
Total cash received
25,140
Cash used
Other
396
Total cash used
396
Net cash from/(used by)
24,744
operating activities
Net increase/(decrease) in cash
24,744
held
Cash from Official Public Account
for:
- Appropriations
396
Total cash from Official Public
396
Account
Cash to Official Public Account for:
- Appropriations
(25,140)
Total cash to Official Public
(25,140)
Account
Cash and cash equivalents at
end of reporting period
Prepared on Australian Accounting Standards basis.
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
8,687
8,812
8,812
8,812
9,600
18,287
9,600
18,412
9,600
18,412
9,600
18,412
354
354
357
357
357
357
357
357
17,933
18,055
18,055
18,055
17,933
18,055
18,055
18,055
354
357
357
357
354
357
357
357
(18,287)
(18,412)
(18,412)
(18,412)
(18,287)
(18,412)
(18,412)
(18,412)
-
-
-
-
Table 3.10: Administered capital budget statement (for the period ended 30 June)
ASQA does not have any administered capital budget, therefore Table 3.10 is not
presented.
Table 3.11: Statement of administered asset movements (Budget year 2017–18)
ASQA does not have any administered assets, therefore Table 3.11 is not presented.
209
TERTIARY EDUCATION QUALITY
AND STANDARDS AGENCY
ENTITY RESOURCES AND PLANNED
PERFORMANCE
211
TERTIARY EDUCATION QUALITY AND STANDARDS
AGENCY
SECTION 1: OVERVIEW AND RESOURCES ................................................................. 214
1.1
Strategic direction statement ........................................................................ 214
1.2
Entity resource statement ............................................................................. 217
1.3
Budget measures .......................................................................................... 219
SECTION 2: OUTCOMES AND PLANNED PERFORMANCE...................................... 220
2.1
Budgeted expenses and performance for Outcome 1 .................................. 221
SECTION 3: BUDGETED FINANCIAL STATEMENTS ................................................. 229
3.1
Budgeted financial statements...................................................................... 229
3.2
Budgeted financial statements tables ........................................................... 231
213
TERTIARY EDUCATION QUALITY AND STANDARDS
AGENCY
Section 1: Overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
The Tertiary Education Quality and Standards Agency (TEQSA) is Australia’s national
higher education quality assurance and regulatory agency established under the
Tertiary Education Quality and Standards Agency Act 2011 (the Act). TEQSA commenced
regulatory functions on 29 January 2012.
The Act confers powers and functions on TEQSA, among other things, to:

register regulated entities as registered higher education providers and accredit
courses of study

conduct compliance assessments and quality assessments

conduct accreditation assessments of courses developed by providers without
self-accrediting authority

provide advice and make recommendations to the Minister on matters relating to
the quality or regulation of higher education providers

collect, analyse, interpret and disseminate information relating to quality
assurance practice and quality improvement in higher education

co-operate with similar agencies in other countries.
TEQSA also has responsibility, as an ESOS agency under the Education Services for
Overseas Students Act 2000, for English Language Intensive Course for Overseas
Students (ELICOS) providers if they have an entry arrangement with a registered
higher education provider, and for Foundation Program providers.
TEQSA’s strategic priorities
TEQSA’s mission is to safeguard student interests and the reputation of the higher
education sector by assuring the quality of Australian higher education through a
proportionate, risk-reflective approach which allows higher education providers to
pursue their individual missions and encourages diversity, innovation and excellence.
In pursuit of this mission, four key strategic priorities are identified for action over the
period of the Corporate Plan:

effective oversight of the quality and reputation of Australian higher education
214
TEQSA Budget Statements

efficient, effective, responsive, risk-based quality assurance and regulatory
activities

constructive and collaborative relationships with governments, higher education
providers, students and other stakeholders

effective internal quality assurance by providers.
These priorities will be addressed by further enhancement of TEQSA’s annual risk
assessments and increased flexibility in approaches to provider assessment. The
successful case management model will be maintained and emphasis will continue to
be placed on engagement and communication with higher educational providers and
students.
TEQSA’s development and progress
TEQSA has gained considerable insights into the range of providers operating in the
Australian higher education sector and an understanding of the key issues confronting
them. This has guided the design and refinement of our assessment processes,
including a case-management approach, annual risk assessments, provider
information requests and formal assessments for provider registration and course
accreditation purposes.
Through tailoring of our assessment processes and evidence requirements to the
context, circumstances and track record of individual providers, we have significantly
reduced the reporting and regulatory burden for most providers. We have also
committed more attention and resources to prospective new entrants and providers
exhibiting the greatest risks to the quality of students’ learning experiences and
outcomes.
One of the major activities TEQSA is currently focusing on is the increased level of
interest and number of applications from prospective entrants to the higher education
sector with the majority of applications received from prospective entrants currently
operating as Registered Training Organisations. This has occurred at the same time as
recent changes to the vocational education and training (VET) loan scheme. The new
VET Student Loan scheme has also impacted on the operation of some providers that
operate as both a registered training organisation and a higher education provider.
TEQSA is working with the Department of Education and Training and the Australian
Skills Quality Authority to share information about dual sector operators and related
entities of higher education providers of concern.
The commencement of the new Higher Education Standards Framework (Threshold
Standards) on 1 January 2017 has necessitated a review of external and internal
documentation including application forms, application guides and guidance notes.
The revised framework has a strong student focus while supporting TEQSA’s
risk-based approach to performing its functions. Considerable effort has been made to
ensure providers fully understand their responsibilities, while minimising the
regulatory burden in applying the Framework.
215
TEQSA Budget Statements
TEQSA has also worked closely with the Higher Education Standards Panel in their
drive to improve the quality of information available to current and prospective
students in their decisions about enrolment in higher education. The Panel has
recommended that TEQSA support providers in complying with those parts of the
Higher Education Standards Framework relevant to information about admissions
processes. The 2017–18 Budget includes an additional $3.3 million over four years to
support TEQSA’s role in responding to the recommendations of the Higher Education
Standards Panel’s Improving the Transparency of Higher Education Admissions, which was
released on 16 November 2016.
TEQSA anticipates a number of substantial changes to the higher education sector,
including increasingly vigorous domestic and international competition. Drivers of
change include the potential for further policy reform of the sector and opportunities
presented by increasingly sophisticated digital technology for providers to enhance
and expand innovative processes and delivery. There are significant potential risks
associated with those developments. In addition, review of the impact of the TEQSA
Act may result in legislative changes that require a review of operations. For this
reason, the context within which TEQSA undertakes its core activities, and their scope
and scale, are likely to reshape progressively in the future years. TEQSA will continue
to review its processes on a regular basis to respond to these anticipated changes.
216
TEQSA Budget Statements
1.2
ENTITY RESOURCE STATEMENT
Table 1.1 shows the total funding from all sources available to the entity for its
operations and to deliver programs and services on behalf of the Government.
The table summarises how resources will be applied by outcome (government strategic
policy objectives) and by administered (on behalf of the Government or the public) and
departmental (for the entity’s operations) classification.
For more detailed information on special accounts and special appropriations, please
refer to Budget Paper No. 4 – Agency Resourcing.
Information in this table is presented on a resourcing (that is, appropriations/cash
available) basis, while the ‘Budgeted expenses by Outcome’ table in Section 2 and the
financial statements in Section 3 are presented on an accrual basis.
217
TEQSA Budget Statements
Table 1.1: TEQSA resource statement — Budget estimates for 2017–18 as at
Budget May 2017
2016–17
Estimated
actual
$'000
Departmental
Annual appropriations - ordinary annual services (a)
Prior year appropriations available (b)
Departmental appropriation (c)
s74 retained revenue receipts (d)
Departmental capital budget (e)
Annual appropriations - other services - non-operating (f)
Prior year appropriations available
Equity injection
Total departmental annual appropriations
Total departmental resourcing
Administered
Special Appropriations
s77 Special appropriation (g)
Total administered special appropriations (h)
Total administered resourcing
Total resourcing for entity TEQSA
2017–18
Estimate
$'000
7,404
11,359
401
864
9,082
12,198
260
851
20,028
20,028
100
22,491
22,491
200
200
200
20,228
200
200
200
22,691
2016–17
2017–18
Average staffing level (number)
48
51
Prepared on a resourcing (i.e. appropriations available) basis.
Note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement.
(a) Appropriation Bill (No. 1) 2017–18.
(b) Excludes $0.015m subject to administrative quarantine by Finance or withheld under section 51 of the
Public Governance, Performance and Accountability Act 2013 (PGPA Act).
(c) Excludes departmental capital budget (DCB).
(d) Estimated retained revenue receipts under section 74 of the PGPA Act.
(e) Departmental capital budgets are not separately identified in Appropriation Bill (No. 1) and form part of
ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes,
this amount has been designated as a 'contribution by owner'.
(f)
Appropriation Bill (No. 2) 2017–18.
(g) Estimated special appropriation under section 77 of the PGPA Act.
(h) Excludes 'Special Public Money' held in accounts like Other Trust Monies accounts (OTM), Services
for Other Government and Non-agency Bodies accounts (SOG) or Services for Other Entities and
Trust Moneys accounts (SOETM). For further information on special appropriations and special
accounts, please refer to Budget Paper No. 4 - Agency Resourcing. Please also see Table 2.1 for
further information on outcome and program expenses broken down by various funding sources, e.g.
annual appropriations, special appropriations and special accounts.
218
TEQSA Budget Statements
1.3
BUDGET MEASURES
Budget measures in Part 1 relating to TEQSA are detailed in Budget Paper No. 2 and
are summarised below.
Table 1.2: TEQSA 2017–18 Budget measures
Part 1: Measures announced since the 2016–17 Mid-Year Economic and Fiscal Outlook
(MYEFO)
Program
2016–17
$'000
2017–18
$'000
2018–19
$'000
2019–20
$'000
2020–21
$'000
Expense measures
Higher Education Reform - a fairer and
student-focused higher education
system (a)
Departmental expenses
1.1
-
1,108
532
862
680
Total
Total expense measures
Departmental
-
1,108
532
862
680
-
1,108
532
862
680
Total
Capital measures
-
1,108
532
862
680
-
100
-
-
-
-
100
-
-
-
-
100
-
-
-
Higher Education Reform - a fairer and
student-focused higher education
system (a)
Departmental capital
1.1
Total
Total capital measures
Departmental
Total
100
Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a
decrease in funds and a positive (+) represent an increase in funds.
(a) The lead entity for measure ‘Higher Education Reform - a fairer and student-focused higher education
system’ is the Department of Education and Training. The full measure description and package details
appear in Budget Paper No. 2 under the Education and Training portfolio.
219
TEQSA Budget Statements
Section 2: Outcomes and planned performance
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programs are the
primary vehicle by which government entities achieve the intended results of their
outcome statements. Entities are required to identify the programs which contribute to
government outcomes over the Budget and forward years.
Each outcome is described below together with its related programs. The following
provides detailed information on expenses for each outcome and program, further
broken down by funding source.
Note:
Performance reporting requirements in the Portfolio Budget Statements are part of the
enhanced Commonwealth performance framework established by the Public
Governance, Performance and Accountability Act 2013. It is anticipated that the
performance criteria described in Portfolio Budget Statements will be read with
broader information provided in an entity’s corporate plans and annual performance
statements—included in Annual Reports—to provide an entity’s complete
performance story.
The most recent corporate plan for TEQSA can be found at: www.teqsa.gov.au
The most recent annual performance statement can be found in the Annual Report at:
www.teqsa.gov.au
220
TEQSA Budget Statements
2.1
BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1
Outcome 1: Contribute to a high quality higher education sector through
streamlined and nationally consistent higher education regulatory
arrangements; registration of higher education providers; accreditation of
higher education courses; and investigation, quality assurance and
dissemination of higher education standards and performance.
Budgeted expenses for Outcome 1
This table shows how much TEQSA intends to spend (on an accrual basis) on
achieving the outcome, broken down by program, as well as by administered and
departmental funding sources.
Table 2.1.1: Budgeted expenses for Outcome 1
Outcome 1: Contribute to a high quality higher education sector through streamlined and nationally
consistent higher education regulatory arrangements; registration of higher education providers;
accreditation of higher education courses; and investigation, quality assurance and dissemination
of higher education standards and performance.
2016–17
Estimated
actual
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
12,198
11,537
11,877
11,748
260
261
262
263
728
613
555
565
13,186
12,411
12,694
12,576
13,186
12,411
12,694
12,576
11,359
12,198
11,537
11,877
11,748
401
260
261
262
263
1,139
728
613
555
565
12,899
12,899
13,186
13,186
12,411
12,411
12,694
12,694
12,576
12,576
Program 1.1: Regulation and Quality Assurance
Departmental expenses
Departmental appropriation
11,359
s74 Retained revenue
401
receipts (a)
Expenses not requiring
appropriation in the Budget
1,139
year (b)
Departmental total
12,899
Total expenses for
12,899
program 1.1
Outcome 1 Totals by appropriation type
Departmental expenses
Departmental appropriation
s74 Retained revenue
receipts (a)
Expenses not requiring
appropriation in the Budget
year (b)
Departmental total
Total expenses for Outcome 1
2017–18
Budget
$'000
2016–17
2017–18
48
51
Average staffing level (number)
(a) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act 2013.
(b) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,
amortisation expenses, make good expenses, and audit fees.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the budget year as government priorities change.
221
TEQSA Budget Statements
Performance criteria for Outcome 1
This section details the performance criteria for each program associated with
Outcome 1. It summarises how each program is delivered and where 2017–18 Budget
measures have created new programs or materially changed existing programs.
Outcome 1: Contribute to a high quality higher education sector through
streamlined and nationally consistent higher education regulatory
arrangements; registration of higher education providers; accreditation of
higher education courses; and investigation, quality assurance and
dissemination of higher education standards and performance.
Program 1.1: Regulation and Quality Assurance
Objective
Regulation and quality assurance ensure that quality standards are being met by all
higher education providers so that the interests of students and the reputation of
Australia’s higher education sector are promoted and protected. This occurs by
reference to the Higher Education Threshold Standards, which are determined by the
Minister for Education and Training on advice from an independent Higher Education
Standards Panel. A risk-based approach is used for planning and implementing
assessments of provider compliance with those Standards.
Delivery
The program is delivered through the following activities:












Purpose
identify, monitor and respond to significant trends, incidents and risks to higher
education that is delivered in or from Australia
promote the role, importance and effectiveness of Australia’s quality assurance
and regulatory system in maintaining the reputation of Australian higher education
domestically and overseas
contribute to the enhancement of the national data collection and national sharing
of the data about the quality of higher education
further integrate risk analysis and quality assurance activities
maintain a strong focus on the educational experiences and outcomes for students
in quality assurance activities
continue to implement a program of improvement of quality assurance and
regulatory approaches involving key stakeholders
align people, programs and processes to build organisational capability
share data and analyses to support compliance and improvement activities.
strengthen the collaborative relationship with ASQA, the Higher Education
Standards Panel and other agencies with mutual interests in Australia and
internationally
consult with peak bodies and higher education providers to promote a shared
understanding of TEQSA’s approach and its core functions
optimise TEQSA’s application of the Higher Education Standards Framework
(HESF) to enhance internal quality assurance processes of higher education
providers
provide guidance to providers on enhancing internal quality assurance.
Tertiary Education Quality and Standards Agency Corporate Plan 2016–2020
Program 1.1 contributes to protect the interests and meet the requirements of
students, higher education providers, government and the wider community through
the following purposes of TEQSA:




effective oversight of the quality and reputation of Australian higher education
efficient, effective, responsive, risk-based quality assurance and regulatory
activities
constructive and collaborative relationships with governments, higher education
providers and other stakeholders
effective internal quality assurance by providers.
222
TEQSA Budget Statements
Performance information 1.1 Regulation and Quality Assurance
Year
Performance criteria
Expected achievement or target
2016–17
a) TEQSA has effective mechanisms to
identify, monitor and respond to risks to
higher education across the sector.
Completed annual risk assessments
and sector-wide review of the
correlation between risk assessments
and assessment outcome.
b) Enhanced levels of information about the
sector are available to the sector and
stakeholders.
The Key Financial Metrics on Australia’s
higher education sector report was
published in December 2016.
The 2016 Statistics Report on TEQSA
Registered High Education Providers
outlined key statistics of the Australian
higher education sector. This year’s
Statistics Report is anticipated to be
published in May 2017.
TEQSA held its first Annual Conference
– Sharing Excellence: Assuring Quality
in November 2016. The event was well
received by the sector.
c) TEQSA engages in regular, constructive
consultation with the sector, and also
engages with international agencies to
contribute to the development of
transnational policy.
TEQSA continued to sign a number of
strategic MoUs with:



International Quality Assurance
Agencies
Industry Professional Bodies
Government Departments.
TEQSA is also developing information
sharing protocols to support this MoU
activity.
d) TEQSA collaborates in the development of
national data collections.
TEQSA is a member of the National
Data Collection Committee and
continues to collaborate with
Department of Education and Training
during the consolidation of the Provider
Information Request data and whole-ofsector analysis.
e) Regulation and quality assurance does not
unnecessarily impede the efficient operation
of higher education providers.
The TEQSA Stakeholder Survey 2016
results reported that TEQSA was
efficient and effective in the
administration of regulatory functions.
80% of principal contacts and 70% of
Vice Chancellors (VCs)/CEOs rated
TEQSA’s performance for this KPI as
good or excellent.
Tailored and proportionate approaches
were applied to all assessments
undertaken during the year, based on
risks and performance data from
providers.
223
TEQSA Budget Statements
Year
Performance criteria
f)
Expected achievement or target
TEQSA’s decisions clearly articulate the
reasons for decisions, and all higher
education providers have a reasonable
opportunity to address matters relevant to a
decision.
TEQSA gave providers a reasonable
opportunity to address relevant matters
(usually through provision of a draft
Summary of Findings document for
comment prior to a decision being
made) and provided clear reasons for its
decisions (usually through a Statement
of Reasons).
g) Quality assurance and regulatory actions
undertaken by TEQSA are proportionate to
the risks being managed.
TEQSA Stakeholder Survey 2016
results reported TEQSA’s regulatory
actions were proportionate to the risks
being managed. 60.8% of principal
contacts and 71.2% of VCs/CEOs rated
TEQSA’s performance for this KPI as
good or excellent. The three principles
of necessity, risk and proportionality
were consistently applied.
h) TEQSA’s compliance and monitoring
approaches are streamlined and
coordinated.
TEQSA Stakeholder Survey 2016
results reported TEQSA’s compliance
and monitoring approaches are
streamlined and coordinated. 73.1% of
principal contacts and 76.9% of
VCs/CEOs rated TEQSA’s performance
for this KPI as good or excellent.
i)
Effective implementation of regulatory
responsibilities is achieved; including
requirements of the TEQSA and ESOS
Acts.
Assessments for (re)registrations and
(re)accreditations were completed in
accordance with legislation.
j)
The quality assurance framework continues
to be improved in consultation with
stakeholders.
Roundtable discussions with providers
and peak bodies were held and post
implementation activities for the Higher
Education Standards Framework
(HESF) 2015 were completed.
Regular e-news updates provided to the
sector on the transition to HESF 2015.
New guidance notes published and
updates to other guidance notes
published.
Application guides further refined and
published.
New online forms and multiple
supporting templates for the HESF 2015
applications developed and delivered to
all providers, via the provider portals.
224
TEQSA Budget Statements
Year
Performance criteria
Expected achievement or target
k) TEQSA has people with the right skills to
deliver the Agency’s strategies and
identifies and addresses capability gaps to
enable delivery of its statutory
responsibilities.
Capability assessments were completed
for all staff during 2016–17 and an
enhanced Organisational Capability
Framework in place by July 2017.
l)
A number of Guidance Notes for
providers were updated.
Quality assurance business processes are
documented and applied consistently.
In October 2016, TEQSA undertook a
restructure to ensure it achieved its
strategic objectives in the corporate
plan. This organisational reshaping
ensures that TEQSA is able to secure
and enhance our approach to service
delivery, including better alignment of
staff capability and structures with
organisational priorities through
specialisation and consolidating similar
activities.
TEQSA’s internal quality management
framework is under review and will be
updated, including an update to the
Case Management Handbook for staff.
m) TEQSA’s communication with higher
education providers is clear, targeted and
effective.
TEQSA Stakeholder Survey 2016
results reported TEQSA’s
communication with Higher Education
Providers was clear, targeted and
effective. 80.8% of principal contacts
and 78.2% of VCs/CEOs rated
TEQSA’s performance for this KPI as
good or excellent.
n) TEQSA’s dealings with higher education
providers are open, transparent and
consistent.
TEQSA Stakeholder Survey 2016
results reported TEQSA’s dealings with
higher education providers were open,
transparent and consistent. 72.5% of
principal contacts and 81.7% of
VCs/CEOs rated TEQSA’s performance
for the KPI as good or excellent.
225
TEQSA Budget Statements
Year
Performance criteria
Expected achievement or target
o) Increased synergies developed with other
agencies and contributions to collaborative
goals.
TEQSA has demonstrated effective
collaboration and constructive input on
thematic issues with ASQA, Dept. of
Immigration and Border Protection,
AITSL, Department of Education and
Training, and other government
agencies. In particular, the sharing of
appropriate information on dual sector
(Higher Education/VET) providers has
been enhanced.
In October 2016, TEQSA hosted the
fifth meeting of the Quality Beyond
Boundaries Group, an international
network of quality assurance agencies.
Topics discussed included academic
integrity and its challenges on a global
scale, perspectives from working with
Government in different jurisdictions,
better frameworks for transnational data
collection and the comparability of data
across jurisdictions.
TEQSA continued to sign MoUs with a
number of organisations.
Information links in place between the
TEQSA National Register and QILT
websites.
2017–18
p) Consultation mechanisms and guidance
resources are developed for transition to
the revised Higher Education Standards
Framework.
Refer to achievement/target for
performance criterion (j).
q) Enhanced internal quality assurance
systems are reflected in reduced regulatory
burden for providers.
Positive TEQSA Stakeholder Survey
2016 results as per performance criteria
(m) and (n)
r)
Refer to achievement/target for
performance criterion (j).
TEQSA proactively supports provider selfassurance, including the application to
achieve Self-Accrediting Authority.
a) TEQSA has effective mechanisms to
identify, monitor and respond to risks to
higher education across the sector.
Complete annual risk assessments and
sector wide review of the correlation
between risk assessments and
assessments outcome.
b) TEQSA engages in regular, constructive
consultation with the sector, stakeholders
and international agencies to achieve the
agencies strategic objectives. This
engagement is supported by enhanced
levels of sector information being made
readily available.
Roundtable discussions, forums and
engagement held with stakeholders
during the year. MoUs signed or resigned with peak domestic and
international bodies. International visits
and staff exchanges to occur during the
year.
Providers and stakeholders are
provided with regular statistical sector
reports.
TEQSA Annual Conference.
226
TEQSA Budget Statements
Year
Performance criteria
Expected achievement or target
c) TEQSA collaborates in the development of
national data collections.
TEQSA continues to be represented on
the National Data Collection Committee.
Collaborate with Department of
Education and Training during the
consolidation of collection of data.
Complete whole-of-sector analysis on
Provider Information Request data.
d) Regulation and quality assurance does not
unnecessarily impede the efficient operation
of higher education providers. In particular,
quality assurance and regulatory actions
undertaken by TEQSA are proportionate to
the risks being managed.
Provider survey results reflect TEQSA’s
efficient and effective administration of
regulatory functions.
e) TEQSA’s decisions clearly articulate the
reasons for decisions, and all higher
education providers have a reasonable
opportunity to address matters relevant to a
decision.
TEQSA will give providers a reasonable
opportunity to address relevant matters
(usually through provision of a draft
Summary of Findings document for
comment prior to a decision being
made) and provide clear reasons for its
decisions (usually through a Statement
of Reasons).
f)
TEQSA’s compliance and monitoring
approaches are streamlined and
coordinated.
Tailored and proportionate approaches
are applied to all assessments
undertaken during the year, based on
risks and performance data from
providers.
Productivity increase in relation to
assessments through tailoring and
streamlining compared to previous
financial year.
g) Effective implementation of regulatory
responsibilities is achieved; including
requirements of the TEQSA and ESOS
Acts.
Completed assessments in accordance
with legislation.
h) TEQSA has people with the right skills to
deliver the Agency’s strategies and
identifies and addresses capability gaps to
enable delivery of its statutory
responsibilities.
Organisational Capability Framework
meets the agency’s strategic objectives.
i)
Enhanced internal quality assurance
systems are reflected in reduced regulatory
burden for providers.
Regular updating and production of
guidance notes for providers, Case
Management Handbook for staff and
continued implementation of business
process improvement initiatives.
j)
TEQSA’s communication with higher
education providers is clear, targeted and
effective. Specific dealings with higher
education providers are also open,
transparent and consistent.
Positive Provider survey results and
feedback from roundtables, transition to
new standards forums and peak bodies
during the year.
227
TEQSA Budget Statements
Year
Performance criteria
Expected achievement or target
k) Increased synergies developed with other
agencies and contributions to collaborative
goals.
Effective collaboration and constructive
input on thematic issues with ASQA,
AITSL, Department of Education and
Training, and other government
agencies.
Increased engagement with Quality
Beyond Boundaries and other
international peak bodies, establish new
or renewed MoUs, including ACNC and
state government agencies.
l)
2018–19
and beyond
TEQSA proactively supports provider selfassurance, including the application to
achieve Self-Accrediting Authority.
As per 2017–18
TEQSA to correctly identify the risk
status of providers and provide timely
and meaningful response to risks,
including encouragement and support to
low risk providers seeking SelfAccrediting Authority.
As per 2017–18
228
TEQSA Budget Statements
Section 3: Budgeted financial statements
Section 3 presents budgeted financial statements which provide a comprehensive
snapshot of entity finances for the 2017–18 Budget year, including the impact of
Budget measures and resourcing on financial statements.
3.1
BUDGETED FINANCIAL STATEMENTS
3.1.1 Differences between entity resourcing and financial statements
TEQSA’s resourcing as presented in Table 1.1 is directly comparable with the budgeted
financial statements.
3.1.2 Explanatory notes and analysis of budgeted financial statements
The budgeted financial statements have been prepared on an accrual accounting basis
having regard to the statements of accounting concepts, and in accordance with the
Government’s financial budgeting and reporting framework and the Australian
Accounting Standards issued by the Australian Accounting Standards Board.
An analysis of TEQSA’s budgeted financial statement for 2017–18 is provided below:
Budgeted departmental comprehensive income statement
The comprehensive income statement shows the estimated net cost of services for
TEQSA. Total expense for 2017–18 is estimated at $13.186 million, an increase of
$0.287 million from the 2016–17 estimated actual.
Total revenue from Government in 2017–18 is estimated to be $12.198 million,
compared to the estimate of $11.359 million for 2016–17, an increase of $0.839 million.
TEQSA has projected an approved operating loss of $0.500 million for 2016–17. The
loss is predominantly due to an increase in regulatory-related activities stemming from
the new Higher Education Standards Framework and a growing interest from the
vocational education and training (VET) sector. This has resulted in a higher estimated
actual in employee and supplier expenses for the entity.
Budgeted departmental balance sheet
TEQSA’s anticipated budgeted equity position of $5.360 million in 2017–18 represents
an increase of $0.275 million from the 2016–17 estimated actual. The small increase in
equity is attributable to the reduction in estimated employee and other provision and
enhancement to the risk analysis model and business system to comply with
admission transparency requirements.
Total assets for 2017–18 are estimated to be $9.262 million, comprising of $5.205 million
in financial assets and $4.057 million in non-financial assets.
229
TEQSA Budget Statements
Total liabilities for 2017–18 are estimated to be $3.902 million, comprising of
$1.456 million in accrued employee entitlements and $2.446 million in provisions and
other payable.
Administered schedule of budgeted income and expenses
Total administered income is comprised of fees from regulatory services to higher
education providers under partial cost recovered arrangements. TEQSA is budgeting
$3.643 million in fees for 2017–18, an increase of $0.335 million from the 2016–17
estimated actual. The increase in budgeted fees reflects the high number of registration
and course accreditation requiring renewal in 2017–18.
All fee revenue is returned to the Consolidated Revenue Fund. TEQSA does not have
any administered expenses, assets or liabilities.
230
TEQSA Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS TABLES
Table 3.1: Comprehensive income statement (showing net cost of services) for
the period ended 30 June
2016–17
Estimated
actual
$'000
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Total expenses
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of
services
Total own-source revenue
Gains
Other
Total gains
Total own-source income
Net (cost of)/contribution by
services
Revenue from Government
Surplus/(deficit) attributable to the
Australian Government
Total comprehensive income/(loss)
Total comprehensive income/(loss)
attributable to the Australian
Government
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
6,123
6,189
587
12,899
6,959
5,551
676
13,186
6,909
4,941
561
12,411
7,203
4,988
503
12,694
7,163
4,900
513
12,576
401
260
261
262
263
401
260
261
262
263
52
52
453
52
52
312
52
52
313
52
52
314
52
52
315
(12,446)
11,359
(12,874)
12,198
(12,098)
11,537
(12,380)
11,877
(12,261)
11,748
(1,087)
(1,087)
(676)
(676)
(561)
(561)
(503)
(503)
(513)
(513)
(1,087)
(676)
(561)
(503)
(513)
Note: Impact of net cash appropriation arrangements
2016–17
2017–18
2018–19
2019–20
2020–21
$'000
$'000
$'000
$'000
$'000
Total comprehensive income/(loss)
excluding depreciation/
amortisation expenses previously
funded through revenue
appropriations
(500)
less depreciation/amortisation
expenses previously funded through
revenue appropriations (a)
587
676
561
503
513
Total comprehensive income/(loss)
- as per the statement of
(1,087)
(676)
(561)
(503)
(513)
comprehensive income
Prepared on Australian Accounting Standards basis.
(a) From 2010–11, the Government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities
(and select corporate Commonwealth entities) were replaced with a separate capital budget (the
Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information
regarding DCBs, please refer to Table 3.5 Departmental Capital Budget Statement.
231
TEQSA Budget Statements
Table 3.2: Budgeted departmental balance sheet (as at 30 June)
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
ASSETS
Financial assets
109
109
109
Cash and cash equivalents
Trade and other receivables
5,256
5,096
5,111
Total financial assets
5,365
5,205
5,220
Non-financial assets
Land and buildings
1,214
1,045
886
Property, plant and equipment
630
568
606
Intangibles
2,006
2,197
2,207
Other non-financial assets
246
247
240
Total non-financial assets
4,096
4,057
3,939
Total assets
9,461
9,262
9,159
LIABILITIES
Payables
Suppliers
278
222
213
Other payables
1,535
1,311
1,068
Total payables
1,813
1,533
1,281
Provisions
Employee provisions
1,513
1,456
1,455
Other provisions
1,050
913
779
Total provisions
2,563
2,369
2,234
Total liabilities
4,376
3,902
3,515
Net assets
5,085
5,360
5,644
EQUITY*
Parent entity interest
Contributed equity
10,463
11,414
12,259
Reserves
Retained surplus (accumulated
(5,378)
(6,054)
(6,615)
deficit)
Total parent entity interest
5,085
5,360
5,644
Total equity
5,085
5,360
5,644
Prepared on Australian Accounting Standards basis.
*
’Equity’ is the residual interest in assets after deduction of liabilities.
232
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
109
5,388
5,497
109
5,570
5,679
737
601
2,009
235
3,582
9,079
588
636
1,810
235
3,269
8,948
208
775
983
204
431
635
1,461
648
2,109
3,092
5,987
1,460
529
1,989
2,624
6,324
13,105
-
13,955
-
(7,118)
(7,631)
5,987
5,987
6,324
6,324
TEQSA Budget Statements
Table 3.3: Departmental statement of changes in equity — summary of
movement (Budget year 2017–18)
Retained
earnings
$'000
Opening balance as at 1 July 2017
Balance carried forward from
previous period
Asset
revaluation
reserve
$'000
Other
reserves
$'000
Contributed
equity/
capital
$'000
Total
equity
$'000
(5,378)
-
-
10,463
5,085
Adjusted opening balance
(5,378)
Comprehensive income
Surplus/(deficit) for the period
(676)
Total comprehensive income
(676)
of which:
Attributable to the Australian
(676)
Government
Transactions with owners
Contributions by owners
Equity injection - Appropriation
Departmental capital budget (DCB)
Sub-total transactions with
owners
Estimated closing balance as at
(6,054)
30 June 2018
Closing balance attributable to
(6,054)
the Australian Government
Prepared on Australian Accounting Standards basis.
-
-
10,463
5,085
-
-
-
(676)
(676)
-
-
-
(676)
-
-
100
851
100
851
-
-
951
951
-
-
11,414
5,360
-
-
11,414
5,360
233
TEQSA Budget Statements
Table 3.4: Budgeted departmental statement of cash flows (for the period ended
30 June)
2016–17
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
13,489
Sale of goods and rendering of
294
services
Net GST received
557
Total cash received
14,340
Cash used
Employees
6,982
Suppliers
6,479
Total cash used
13,461
Net cash from/(used by)
879
operating activities
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and
1,750
equipment and intangibles
Total cash used
1,750
Net cash from/(used by)
(1,750)
investing activities
FINANCING ACTIVITIES
Cash received
Contributed equity
864
Total cash received
864
Net cash from/(used by)
864
financing activities
Net increase/(decrease) in cash
(7)
held
Cash and cash equivalents at the
116
beginning of the reporting period
Cash and cash equivalents at
109
the end of the reporting period
Prepared on Australian Accounting Standards basis.
234
2017–18
Budget
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
11,944
11,153
11,239
11,212
233
234
235
236
485
12,662
440
11,827
431
11,905
425
11,873
7,016
5,961
12,977
6,910
5,312
12,222
7,196
5,404
12,600
7,164
5,359
12,523
$'000
(315)
(395)
(695)
(650)
636
450
151
200
636
450
151
200
(636)
(450)
(151)
(200)
951
951
845
845
846
846
850
850
951
845
846
850
-
-
-
-
109
109
109
109
109
109
109
109
TEQSA Budget Statements
Table 3.5: Departmental capital budget statement (for the period ended 30 June)
2016–17
Estimated
actual
$'000
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
864
851
845
846
850
-
100
-
-
-
Total new capital appropriations
864
951
845
846
850
Provided for:
Purchase of non-financial assets
Other Items
864
-
636
315
450
395
151
695
200
650
Total items
864
951
845
846
850
-
100
-
-
-
864
536
450
151
200
886
-
-
-
-
1,750
636
450
151
200
1,750
636
450
151
200
1,750
636
450
151
200
Equity injections - Bill 2
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriations (a)
Funded by capital appropriation DCB (b)
Funded internally from departmental
resources (c)
TOTAL
RECONCILIATION OF CASH USED
TO ACQUIRE ASSETS TO ASSET
MOVEMENT TABLE
Total purchases
Total cash used to acquire assets
Prepared on Australian Accounting Standards basis.
(a) Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.
(b) Includes purchases from current and previous years' Departmental Capital Budgets (DCBs).
(c) Includes the following sources of funding:
- current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB)
- donations and contributions
- gifts
- internally developed assets
- s74 Retained revenue receipts
- proceeds from the sale of assets.
235
TEQSA Budget Statements
Table 3.6: Statement of asset movements (Budget year 2017–18)
Buildings
$'000
As at 1 July 2017
Gross book value
Accumulated depreciation/
amortisation and impairment
Opening net book balance
Capital asset additions
Estimated expenditure on new
or replacement assets
By purchase - appropriation equity (a)
By purchase - appropriation ordinary
annual services (b)
Total additions
Other movements
Depreciation/amortisation expense
Total other movements
Other property,
plant and
equipment
$'000
Computer
software and
intangibles
$'000
Total
$'000
1,353
770
3,320
5,443
(139)
1,214
(140)
630
(1,314)
2,006
(1,593)
3,850
-
-
100
100
-
45
491
536
-
45
591
636
(107)
(107)
(400)
(400)
(676)
(676)
(169)
(169)
As at 30 June 2018
Gross book value
Accumulated depreciation/
amortisation and impairment
Closing net book balance
1,343
751
3,911
6,005
(298)
1,045
(183)
568
(1,714)
2,197
(2,195)
3,810
Prepared on Australian Accounting Standards basis.
(a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill
(No. 2) 2016–17, including CDABs.
(b) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No. 1)
2016–17 for depreciation/amortisation expenses, DCBs or other operational expenses.
(c) Net proceeds may be returned to the OPA.
236
TEQSA Budget Statements
Table 3.7: Schedule of budgeted income and expenses administered on behalf of
Government (for the period ended 30 June)
2016–17
Estimated
actual
$'000
EXPENSES
Total expenses administered on
behalf of Government
LESS:
OWN-SOURCE INCOME
Own-source revenue
Non-taxation revenue
Sale of goods and rendering of
services
Total non-taxation revenue
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
-
-
-
-
-
3,308
3,643
2,519
4,696
4,276
3,308
3,643
2,519
4,696
4,276
3,643
2,519
4,696
4,276
3,643
2,519
4,696
4,276
3,643
2,519
4,696
4,276
3,643
2,519
4,696
4,276
Total own-source revenue
3,308
administered on behalf of
Government
Total own-sourced income
3,308
administered on behalf of
Government
Net (cost of)/contribution by
3,308
services
Total comprehensive income/(loss)
3,308
Prepared on Australian Accounting Standards basis.
Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of
Government (as at 30 June)
TEQSA returns all administered revenue to the Consolidated Revenue Fund and does
not have any administered assets or liabilities. Therefore, Table 3.8 is not presented.
237
TEQSA Budget Statements
Table 3.9: Schedule of budgeted administered cash flows (for the period ended
30 June)
2016–17
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Sales of goods and rendering of
3,108
services
Total cash received
3,108
Cash used
Other
Total cash used
Net cash from/(used by)
3,108
operating activities
Net increase/(decrease) in cash
held
3,108
Cash and cash equivalents at
beginning of reporting period
Cash from Official Public Account
for:
- Appropriations
200
Total cash from Official Public
Account
200
Cash to Official Public Account for:
- Appropriations
(3,308)
Total cash to Official Public
Account
(3,308)
Cash and cash equivalents at
end of reporting period
Prepared on Australian Accounting Standards basis.
2017–18
Budget
$'000
2018–19
Forward
estimate
$'000
2019–20
Forward
estimate
$'000
2020–21
Forward
estimate
$'000
3,443
2,319
4,496
4,076
3,443
2,319
4,496
4,076
-
-
-
-
3,443
2,319
4,496
4,076
3,443
2,319
4,496
4,076
-
-
-
-
200
200
200
200
200
200
200
200
(3,643)
(2,519)
(4,696)
(4,276)
(3,643)
(2,519)
(4,696)
(4,276)
-
-
-
-
Table 3.10: Administered capital budget statement (for the period ended 30 June)
TEQSA does not have any administered capital budget, therefore Table 3.10 is not
presented.
Table 3.11: Statement of administered asset movements (Budget year 2017–18)
TEQSA does not have any administered assets, therefore Table 3.11 is not presented.
238
Portfolio Glossary and Acronyms
PORTFOLIO GLOSSARY
Term
Meaning
Accrual accounting
System of accounting where items are brought to account and included
in the financial statements as they are earned or incurred, rather than as
they are received or paid.
Additional Estimates
Where amounts appropriated at Budget time are insufficient,
Parliament may appropriate more funds to portfolios through the
Additional Estimates Acts.
Additional Estimates
Bills or Acts
These are Appropriation Bills 3 and 4, and a separate Bill for the
Parliamentary Departments [Appropriations (Parliamentary
Departments) Bill (No. 2)]. These Bills are introduced into Parliament
sometime after the Budget Bills.
Administered items
Expenses, revenues, assets or liabilities managed by agencies on behalf
of the Commonwealth. Agencies do not control administered items.
Administered expenses include grants, subsidies and benefits. In many
cases, administered expenses fund the delivery of third party outputs.
Appropriation
An authorisation by Parliament to spend moneys from the
Consolidated Revenue Fund for a particular purpose.
Annual
Appropriation
Two Appropriation Bills are introduced into Parliament in May and
comprise the Budget for the financial year beginning 1 July. Further
Bills are introduced later in the financial year as part of the additional
estimates. Parliamentary departments have their own appropriations.
Annual performance
statements
A document prepared by a Commonwealth entity’s accountable
authority at the end of the reporting period that acquits actual
performance against the planned performance for that year described
in the entity’s corporate plan. Annual performance statements are
included in an entity’s annual report.
Assets
Assets are physical objects and legal rights it is expected will provide
benefits in the future or alternatively items of value owned by an
agency.
Budget measure
A decision by the Cabinet or ministers that has resulted in a cost or
savings to outlays.
Capital expenditure
Expenditure by an agency on capital projects, for example purchasing a
building.
Consolidated
Revenue Fund
Section 81 of the Constitution stipulates that all revenue raised or
money received by the Commonwealth forms the one Consolidated
Revenue Fund (CRF). The CRF is not a bank account. The Official
Public Account reflects most of the operations of the CRF.
239
Portfolio Glossary and Acronyms
Term
Meaning
Corporate plan
The primary planning document of an entity that sets out its purposes,
capability and intended results over a four-year horizon. The plan also
describes how the achievement of results will be assessed against an
entity’s purpose (i.e. a description of planned performance).
Commonwealth entities and companies are required to publish an
updated corporate plan at the start of the reporting period, and provide
a copy to their responsible Minister and the Minister for Finance.
Departmental items
Assets, liabilities, revenues and expenses that are controlled by the
agency in providing its outputs. Departmental items would generally
include computers, plant and equipment assets used by agencies in
providing goods and services and most employee expenses, supplier
costs and other administrative expenses incurred.
Depreciation
Apportionment of an asset’s capital value as an expense over its
estimated useful life to take account of normal usage, obsolescence, or
the passage of time.
Equity or net assets
Residual interest in the assets of an entity after deduction of its
liabilities.
Expenses
Total value of all of the resources consumed in producing goods and
services or the loss of future economic benefits in the form of
reductions in assets or increases in liabilities of an entity.
Fair value
Valuation methodology: The amount for which an asset could be
exchanged or a liability settled, between knowledgeable and willing
parties in an arm’s length transaction. The fair value can be affected by
the conditions of the sale, market conditions and the intentions of the
asset holder.
Forward estimates
A system of rolling three year financial estimates. After the budget is
passed, the first year of the forward estimates becomes the base for the
next year’s budget bid, and another out-year is added to the forward
estimates.
Liabilities
Liabilities represent amounts owing on goods or services that have
been received but not yet paid for. A liability shows the future
commitment of an agency’s assets.
Net annotated
appropriation
(Section 74 Receipts)
Section 74 Receipts, also known as net annotated appropriations, are a
form of appropriation which allows a department access to certain
money it receives in payment of services. These monies are known as
Section 74 Receipts, reflecting their authority under Section 74 of the
PGPA Act 2013.
Official Public
Account
The Australian Government maintains a group of bank accounts at the
Reserve Bank of Australia, known as the Official Public Account
(OPA), the aggregate balance of which represents its daily cash
position.
Operating result
Equals revenue less expenses.
240
Portfolio Glossary and Acronyms
Term
Meaning
Outcomes
The Government's objectives in each portfolio area. Outcomes are
desired results, impacts or consequences for the Australian community
as influenced by the actions of the Australian Government. Actual
outcomes are assessments of the end-results or impacts actually
achieved.
Public Governance,
Performance and
Accountability Act
2013
The Public Governance, Performance and Accountability Act 2013 (PGPA
Act) replaced the Financial Management and Accountability (FMA) Act
1997 and the Commonwealth Authorities and Companies (CAC) Act 1997 as
of 1 July 2014.
Portfolio Budget
Statements
Statements prepared by portfolios to explain the budget appropriations
in terms of outcomes.
Receipts
The total or gross amount received by the Australian Government.
Each receipt item is either revenue, an offset within outlays, or a
financing transaction. Receipts include taxes, interest, charges for
goods and services, borrowings and Government Business Enterprise
(GBE) dividends received.
Revenue
Total value of resources earned or received to cover the production of
goods and services.
Section 74 Receipts
See net annotated appropriation.
Special Account
Balances existing within the Consolidated Revenue Fund (CRF) that are
supported by standing appropriations (PGPA Act, s78 and s80). Special
accounts allow money in the CRF to be acknowledged as set-aside
(hypothecated) for a particular purpose. Amounts credited to a Special
Account may only be spent for the purposes of the Special Account.
Special accounts can only be established by a written determination of
the Finance Minister (s78 of the PGPA Act 2013) or through an Act of
Parliament (referred to in s80 of the PGPA Act 2013).
Special
Appropriations
(including Standing
Appropriations)
An amount of money appropriated by a particular Act of Parliament
for a specific purpose and number of years. For special appropriations
the authority to withdraw funds from the Consolidated Revenue Fund
does not generally cease at the end of the financial year. Standing
appropriations are a sub-category consisting of ongoing special
appropriations — the amount appropriated will depend on
circumstances specified in the legislation.
241
Portfolio Glossary and Acronyms
PORTFOLIO ACRONYMS
Term
Meaning
AAIP
Australian Apprenticeships Incentives Program
AAUT
Australian Awards for University Teaching
ACARA
Australian Curriculum, Assessment and Reporting Authority
ACB
Administered Capital Budgets
ACCSE
Academic Centres of Cyber Security Excellence
ACNC
Australian Charities and Not-for-profits Commission
AESOC
Australian Education Senior Officials Committee
AISC
Australian Industry and Skills Committee
AITSL
Australian Institute for Teaching and School Leadership
AM
Member of the Order of Australia
AMSI
Australian Mathematical Sciences Institute
ANU
Australian National University
AO
Officer of the Order of Australia
ARC
Australian Research Council
ASQA
Australian Skills Quality Authority
CCB
Child Care Benefit
CCR
Child Care Rebate
CCS
Child Care Subsidy
CDAB
Collection Development Acquisition Budget
CEO
Chief Executive Officer
CGS
Commonwealth Grant Scheme
COAG
Council of Australian Governments
COPE
Commonwealth own-purpose expense
CRF
Consolidated Revenue Fund
DCB
Departmental Capital Budget
DIPA
Data Integration Partnership for Australia
DSP
Disability Support Program
EIF
Education Investment Fund
ELLA
Early Learning Languages Australia
ERA
Excellence in Research for Australia
ESA
Education Services Australia
242
Portfolio Glossary and Acronyms
Term
Meaning
ESOS Act
Education Services for Overseas Students Act 2000
GST
Goods and Services Tax
HECS
Higher Education Contribution Scheme
HELP
Higher Education Loan Program
HEPPP
Higher Education Participation and Partnerships Program
HERP
Higher Education Research Promotion
HESF
Higher Education Standards Framework
HESP
Higher Education Superannuation Program
ICT
Information and Communication Technology
IPSP
Inclusion and Professional Support Program
ISF
Industry Skills Fund
ISP
Inclusion Support Programme
IT
Information Technology
ITE
Initial Teacher Education
KPI
Key Performance Indicator
LLN
Language, Literacy and Numeracy
MoU
Memorandum of Understanding
MYEFO
Mid-Year Economic and Fiscal Outlook
NAP
National Assessment Program
NCCD
Nationally Consistent Collection of Data on School Students with
Disability
NCGP
National Competitive Grants Program
NCRIS
National Collaborative Research Infrastructure Strategy
NISA
National Science and Innovation Agenda
NVR Act
National Vocational Education and Training Regulator Act 2011
OECD
Organisation for Economic Co-operation and Development
OPA
Official Public Account
OTM
Other Trust Monies
PAES
Portfolio Additional Estimates Statements
PBS
Portfolio Budget Statements
PGPA Act
Public Governance, Performance and Accountability Act 2013
P-TECH
Pathways in Technology Early College High School
QBB
Quality Beyond Boundaries
243
Portfolio Glossary and Acronyms
Term
Meaning
QILT
Quality Indicators for Learning and Teaching
RTO
registered training organisations
SES
Socio-economic status
SOETM
Services for Other Entities and Trust Moneys
SOG
Services for other Government and Non-agency Bodies
SRS
Schooling Resource Standard
STEM
science, technology, engineering and mathematics
TEMAG
Teacher Education Ministerial Advisory Group
TEQSA
Tertiary Education Quality and Standards Authority
TEQSA Act
Tertiary Education Quality and Standards Agency Act 2011
TFA
Teach for Australia
VC
Vice Chancellor
VET
vocational education and training
244